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Free CMA Exam Braindumps (page: 172)

Page 172 of 336
PDF with 1336 Questions
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Information processing for decision making is characterized by two styles: anaI3, tic and intuitive. Which of the following is a characteristic of the intuitive style?

  1. Unstructured.
  2. Objective.
  3. Detailed.
  4. Deductive.

Answer(s): A

Explanation:

The intuitive style of information processing for decision making is subjective, inductive, non-routine, and unstructured. Intuitive people may rely on hunches and reach decisions without explicitly applying a formal process. The thinking or analytic style of decision making is objective, deductive, precise, detailed, logical, and repetitive. It tends to prevail in the traditional organization.



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The limiting factor principle

  1. Applies to identifying alternative courses of action.
  2. Defines the problem.
  3. Justifies an alternative.
  4. Predicts future costs.

Answer(s): A

Explanation:

The limiting factor principle is used in the decision-making process during the step involving identifying alternative courses of action. The crucial factor is the one that limits or prevents achievement of the desired goal. The mass of alternative choices can be reduced if managers can identify the limiting factors to a problem.



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Determining what is ues must be addressed and considering the objectives of the desired course of action are accomplished during which step of the decision-making process?

  1. Defining the problem.
  2. Obtaining information.
  3. Evaluating solutions.
  4. Implementing the decision.

Answer(s): B

Explanation:

During the step in the decision-making process of obtaining information, the decision maker determines which issues must be addressed, for example, whether to make or outsource a component. The decision maker also considers the objectives of the desired course of action, for example, to increase return on investment or to enter a new market.



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Scenario development

  1. Is a quantitative forecasting method.
  2. Is a method of determining an organization's direction?
  3. Is used to identify courses of action.
  4. Requires preparation of future event scenarios.

Answer(s): D

Explanation:

Scenario development is a qualitative forecasting method that requires preparation of conceptual scenarios of future events given carefully defined assumptions. It entails writing multiple different but equally likely descriptions of future states.



Page 172 of 336



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

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INDIA
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Anonymous
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Georgodino commented on April 29, 2021
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ARGENTINA
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Anonymous
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emad hamdy commented on May 03, 2019
great for passing not so good for learning. Just use it as cheat sheet.
UNITED STATES
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Amer Alnajjar commented on March 11, 2019
Still the test is under process
Anonymous
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Exam Passer commented on December 06, 2018
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Anonymous
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good
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