ACCA Applied Skills · Performance Management · Big data and data analytics
Which of the following BEST describes the use of big data analytics by a management accountant when examining past sales data to understand why sales fell last quarter?
The answer is diagnostic analytics. It uses historical data to explain why an event, such as a fall in sales, occurred. Predictive analytics forecasts future outcomes, prescriptive analytics recommends actions, and descriptive analytics merely summarises what happened.
- ADiagnostic analyticsCorrect
- BPredictive analytics
- CPrescriptive analytics
- DDescriptive analytics only, because past data is used
Explanation
Diagnostic analytics examines historical data to find why something happened. Predictive analytics forecasts what may happen and prescriptive analytics recommends actions. Descriptive analytics only states what happened, not why, so it does not fit the question.
Did you get it right without looking?
One question tells you little. A timed set on Big data and data analytics shows your real accuracy, how long you take and where you lose marks.
More Big data and data analytics questions
- A manufacturer stores large quantities of sensor data from its machines but has never analysed it to inform maintenance or costing decisions…
- A supermarket chain collects data from loyalty cards, social media posts, in-store CCTV and sensor readings, arriving continuously and in ma…
- A logistics company combines structured delivery records held in databases with unstructured customer emails, GPS feeds and photographs of d…
- A company uses data from sensors on its delivery vehicles to feed a model that recommends the delivery routes which minimise fuel cost for t…
- A retailer uses big data analytics to personalise offers using customers' browsing and purchase histories. Which of the following is a risk …
- A retail chain captures millions of till transactions, website click streams and social media comments each day. The management accountant n…