Quiz: Business Analysis Tools

12 Questions | By MaxwellHales | Updated: Mar 16, 2022 | Attempts: 147

This assessment will assist in determining which business analysis tool to apply to analyze a particular process.

You May Get

Activity Based Costing

Activity Based Costing assigns related costs to products and services to determine the true cost of those products and services which provides insight on how successful each product or service offered is. Results will show the true cost of products or services per unit. It is most useful when costs can clearly be entirely or partially assigned to specific products or services.

Full Cost Pricing

Full Cost Pricing (FCP) is a price-setting method in which direct material costs, direct labor costs, selling and administrative costs, and overhead costs for a product/service are added together to derive the price of the product/service. FCP of MTO’s non-tax revenue (fees) is done to ensure that fees charged for the Ministry’s products and services do not exceed the cost incurred in producing them. It also supports the Ministry’s business planning initiatives.

& many more results.
Start this quiz to find your result.

Questions and Answers

1.

Can all costs be reasonably assigned (partially or entirely) to a product or service? For example, it could be nonsensical to assign costs of a staff's leadership training to a particular product or service, in which case, the answer would be no.
- A.
  
  True
- B.
  
  False
2.

Reallocation of funding between teams/units/projects could be beneficial.Example: The government wants to minimize costs in its vehicle fleet. The costs of a 2015 and 2010 sedan are $20000 and $10000 respectively. The yearly price of gas for the 2015 sedan is $1200 and the 2010 sedan is $2000. For simplicity of the example, assume the car is anticipated to be in the fleet for one year, insurance rates are the same for each vehicle and resale value is ignored. The government can then choose the new vehicle that will potentially add value to the employees that utilize it, or choose the older vehicle that will save $20000 - $10000 + $1200 - $2000 = $9200.
- A.
  
  There is no evidence to suggest it
- B.
  
  I agree
3.

Numeration of activity value is possible by judging by factor scales (such as level of importance to MTO, engagement, message, etc.). A numerical value system exists or can be devised and used to evaluate these individual units/teams/projects.
- A.
  
  True
- B.
  
  False
4.

Financial insight on how successful each product or service offered is would be beneficial (e.g. Input/output ratio). This insight includes the true cost per unit of products or services that is inclusive of all costs such as employee compensation, factory costs, etc.
- A.
  
  True
- B.
  
  False
5.

Is the process data driven (as opposed to driven by creativity)?
- A.
  
  Yes
- B.
  
  No
6.

Is the process done the same way each time?
- A.
  
  Yes
- B.
  
  No
7.

Is a goal of the analysis to improve process speed and efficiency?
- A.
  
  Yes
- B.
  
  No
8.

Is numerical data regarding the process available or obtainable?
- A.
  
  Yes
- B.
  
  No
9.

I know or can obtain the desired profit margin and I am interested in the simplest method to decide/evaluate the pricing for a product or service.
- A.
  
  True
- B.
  
  False
10.

Products are made based on customer specification and the main objective of analysis is to make profit after considering fixed costs.
- A.
  
  True
- B.
  
  False
11.

I am interested in quick answers to hypothetical scenarios and minimizing financial risk.
- A.
  
  True
- B.
  
  False
12.

Graphs to assist understanding the result
- A.
  
  Are something I consider valuable.
- B.
  
  Are not something I need.