Data analytics has become a very high-demand skill for employees regardless of their industry. The goal of decision makers gravitates towards the increase of data accessibility and usability with an overall goal of making more data-informed decisions. Within the cost accounting sphere, outcomes achieved are divided into four areas. Which of the following is an accurate description of one of these four areas?
A) Eliminating non-value-added activities: Use data analytics to create a plan to shut down one of the company's factories next year.
B) Performance evaluation: Use data analytics to gain insight into why a specific employee was absent last month.
C) Performance evaluation: Use data analytics to improve production forecasting.
D) Strategy formation: Use prescriptive analytics to create a plan for the future.

Question

Quizplus · Accepted Answer

This question requires familiarity with data analytics and the four areas that businesses might use data analytics in. Choice D is correct because it is a correct description of one of the four areas and the way that data analytics would be used. The remaining choices are incorrect because each contains at least one incorrect description as to how data analytics would be applied to that area.

Data Analytics Has Become a Very High-Demand Skill for Employees