Managers Can Use BI to Answer Tough Business Questions

question 331

Multiple Choice

Managers can use BI to answer tough business questions. Which of the following describes the value of knowing where the business has been?

• A)A historical perspective offers important variables for determining trends and patterns.
• B)Looking at the current business situation allows managers to take effective action to solve issues before they grow out of control.
• C)Setting strategic direction is critical for planning and creating solid business strategies.
• D)None of the above.

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Definitions:

Weighted Average Method

A cost accounting method that calculates the cost of goods sold and ending inventory based on the weighted average cost of all items available for sale.

Lotions and Cosmetic Manufacturer

A type of business that specializes in producing health and beauty products, including creams, lotions, and makeup.

Job Order Cost System

An accounting system used to track the costs related to a specific job or batch of goods.

Process Cost System

An economic tracking system utilized for attributing costs to analogous products manufactured in large quantities and in a steady flow.