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Free CMA Exam Braindumps (page: 173)

Page 173 of 336
PDF with 1336 Questions
View Related Case Study

Which method of indenting alternative courses of action is primarily designed to optimize performance of an activity at 2 minimum cost?

  1. Disunion approach.
  2. Value analysis.
  3. Brainstorming.
  4. Attribute listing.

Answer(s): B

Explanation:

Value analysis is a methodical approach primarily designed to optimize performance of an activity at a minimum cost. Emphasis is on the cost-benefit criterion.



View Related Case Study

The operations research approach to evaluating solutions includes all of the following except

  1. Testing of a mathematical model.
  2. Formulating a mathematical model.
  3. Constructing a quantitative model.
  4. Recognizing the complete system in which the problem operates.

Answer(s): C

Explanation:

Operations research is an overall approach that applies a variedly of scientific and mathematical techniques. It involves the following: recognition of the complete system, including interrelationships, in which the problem operates; formulation of a mathematical model; testing of the model; and implementation of the optimal solution as produced by the model. Simulation requires the construction of a quantitative model.



View Related Case Study

When a decision maker is faced with a decision and the probabilities of various outcomes are known, the situation is said to be decision making

  1. Under risk.
  2. Under uncertainly.
  3. Under certainly.
  4. Through satisfying.

Answer(s): A

Explanation:

Decision making under risk entails consideration of multiple possible future states of nature for each choice. The decision is under risk if a probability distribution for these states can be estimated. Thus, the states of nature will be mutually exclusive, and the sum of their probabilities will equal 1.0. Risk increases as the variability of outcomes become greater. In practice, however, the terms risk and uncertainly are often treated as synonyms.



View Related Case Study

Evaluating performance and giving feedback is the final step in the decision-making process. This step involves

I). Proper delegation of authority.
II). Placement of the solution in a feasible framework.
Ill). Effective communication of the decision.

  1. l only.
  2. l and II.
  3. II only.
  4. l, ll, and lll.

Answer(s): D

Explanation:

The step of evaluating performance and giving feedback is vital to improve future execution of the prior steps or even the decision model itself. The proper delegation of authority is made to the individual responsible for implementing the action to be taken. Performance measurement is then provided for. This process puts the solution into a feasible framework, which assures it will be carried out. Finally, decisions cannot be fully implemented until they are effectively communicated.



Page 173 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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Amer Alnajjar commented on March 11, 2019
Still the test is under process
Anonymous
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