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Free CMA Exam Braindumps (page: 171)

Page 171 of 336
PDF with 1336 Questions
View Related Case Study

The modeling technique to be employed in a situation involving a sequence of events with several possible outcomes associated with each event is

  1. Cost-benefit analysis.
  2. Decision tree analysis.
  3. The Monte Carlo method.
  4. Linear programming.

Answer(s): B

Explanation:

Decision trees may be used to describe complex decision situations. Each branch of the tree represents a different decision, and each twig extending from each branch represents several possible outcomes of the decision.



View Related Case Study

When making predictions about costs, what makes a cost relevant to a decision?

  1. Cost has already been paid.
  2. Cost must vary between alternatives.
  3. Cost must be paid in the future.
  4. Cost must both vary between alternatives and be paid in the future.

Answer(s): D

Explanation:

To be relevant to a decision, a cost must vary between alternatives and be paid or incurred in the future.



View Related Case Study

A company is designing a new regional distribution warehouse. To minimize delays in loading and unloading trucks, an adequate number of loading docks must be built. The most relevant technique to assist in determining the proper number of docks is

  1. Linear programming.
  2. Decision trees.
  3. The Monte Carlo method.
  4. Queuing theory.

Answer(s): D

Explanation:

Queuing theory is a group of mathematical models for systems involving waiting lines. In general, a queuing system consists of a waiting line and a service facilely (loading docks in this case). The objective of queuing theory is to minimize the total cost of the system, including both service and waiting costs, for a given rate of arrivals.



View Related Case Study

A decision model is a formal means of choosing future courses of action. The programmed decision process and the non programmer decision process are used for making decisions. What is the difference between the two?

  1. The programmed decision process is used for complex situations.
  2. The programmed decision process is not based upon decision rules.
  3. The non programmer decision process requires answers to four questions.
  4. No difference exists between the two.

Answer(s): C

Explanation:

Management accountants provide qualitative information as well as quantitative financial and 1nonfinancial information useful in applying a decision model, The programmed decision process is used for routine or repetitive decisions. The non programmer decision process is used for complex. no routine situations calling for the use of the problem- solving process. Pour questions need to be answered before making a non programmer decision.



Page 171 of 336



Post your Comments and Discuss Financial CMA exam with other Community members:

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Georgodino commented on April 29, 2021
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Amer Alnajjar commented on March 11, 2019
Still the test is under process
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