Business Analysis Is Difficult from Operational Databases

question 28

Multiple Choice

Business analysis is difficult from operational databases. Which of the following is a reason why?

• A) Every department has its own method for recording data.
• B) Data standards do not apply across departments.
• C) The data, if available, were often incorrect or incomplete.
• D) All of these.

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Definitions:

Accounting Profit

Accounting profit is the financial gain calculated by subtracting total explicit costs from total revenue.

Explicit Costs

Direct, out-of-pocket payments for wages, rent, materials, and other inputs necessary for the production of goods or services.

Implicit Costs

The opportunity costs of using resources owned by the firm for its own use, without any direct payment made.

Opportunity Cost

The worth of the best alternative given up to make a choice.