Exam 13: Data Analytics

A public university has been evaluating its admissions policies and procedures. The university has recently seen a downturn in enrollment, and university leadership does not entirely understand why this happened. The university has not changed or updated their admissions decision-making processes in years. The current process uses an algorithm based on data available years ago to do enrollment modeling. Which of the following could be a disadvantage of not updating the process?

Artemis Inc. is a major producer of high-end designer dog collars and other accessories. Over the past few years, their goals have focused on increasing sales and expanding into new territories. Management feels that they do not have a good handle on what their current year looks like compared to the past several years. They would like to use data analytics to fix this issue because they realize the relevance and importance these analyses have in a modern business landscape. With this information in mind, please answer the following questions. a. After considering what management hopes to investigate, will data analytics be useful in their decision-making? Please support your answer. b. If the company were to use data analytics, then what kinds of questions could they ask and answer using these analyses? c. Are there any additional considerations that pertain to their use of data analytics? Does a potential for error or misuse exist?

Rhoades Corp. is a law firm. They continue to bring on new associates because they continue to attract new clients and cases. Their accounting department has compiled the following information for the three years they have been in operation: What is the percent change in net income from Year 1 to year 3?

Companies doing business in the modern era often look for ways to maximize the resources they have at their disposal. This can vary in the way it is executed and will look different from company to company. Which of the following represents an ineffective way for employees to add to their data analytics skillset?

Starling Corporation completed their fifth year of operations as a manufacturer of chalkboard paint. Starling has seen growth in sales. But they have concerns about whether their spending is higher than they would like it to be. As part of their annual review process, management would like to put together some data and analyze it to create some visuals that better illustrate their performance over the year. The accounting department compiled the following data for the previous five years: Management asked the analysts to help in this year's review and will need the information compiled within the next week. With all of this in mind, please assist Starling by answering the following questions. Use Excel where appropriate. a. What is the average value for Sales over those five years? What is the average Cost of Goods Sold for five years? What were the average Expenses for five years? (Round your answers to whole number.) b. What is the Gross Profit percentage for each year? What are the Net Income percentages for each year? c. To visually depict this information, Starling would like to create a graph. Which type of graph is most appropriate, and why? Create the graph you just mentioned. d. Based on the analysis and graph you provided so far, what observations can you make about Starling Corporation? Is there any advice you would like to give management to help them move forward?

A company investigates what types of data it wants to gather and how they plan to collect it. They know a variety of methods can be employed, and each company will select the most cost-effective and secure option that meets their specific needs. If a company would like to purchase data from outside vendors, then which of the following best represents a credible external source a company could use?

Rhoades Corp. is a law firm. They continue to bring on new associates because they continue to attract new clients and cases. Their accounting department compiled the following information for the three years they have been in operation: What is the average revenue for Years 1 to 3?

Using data analytics in cost accounting is proving to be a big opportunity to improve operations for various businesses. While data analytics have come a long way, there are still challenges and opportunities to consider. Which of the following is an opportunity for an accountant that uses data analytics?

As consumers have increased their use of and reliance on the internet, data usage has grown exponentially. As consumers use more data, organizations develop ways to gather and retain that information. This big data is divided into structured and unstructured data. Which of the following is an example of a characteristic of unstructured data?

Wally's Window Emporium is a leading producer and provider of residential windows across the United States. They just completed their second year of operations and compiled the following data: Management feels overwhelmed when they look at the data in this format, and management does not feel comfortable making decisions for the upcoming year until the data is easier to understand. The analytics team needs to present this information in a more user-friendly fashion so management can make data-informed decisions for the coming year. With this information in mind, please answer the following questions. a. What are the average sales, average cost of goods sold (COGS), and average expenses for each region across both years? b. Which region had the largest increase in gross profit from Year 1 to Year 2, and which region showed the largest increase in net income from Year 1 to Year 2? c. What kind of graph would be the most useful to display the division of sales revenues for the South region in Year 1?

Marco Corp. is a medium-sized textile factory that supplies local boutiques in their area. In the past few years, they have experienced a lot of growth and would like to continue to grow at a manageable rate. Marco knows that to do so, they will need to become more data-informed in their decision-making processes. To make best use of their resources, which of the following represents the most effective way to integrate data analytics into the company?

Samantha is a Human Resource Associate for a small factory, and management asked her department to evaluate current wage trends. Ultimately, management has expressed concerns about the turnover the factory experienced over the past couple of years, and they hope to use analytics to determine possible causes. The company experienced a lot of turnover that has caused a lot of change in the rates paid to different hourly workers. The accounting department gathered the following data about 10 factory workers employed during the two-year period: Samantha needs to use data analytics to assist in the investigation into possible causes for this turnover. With this information in mind, please answer the following questions. Use Excel or a similar spreadsheet program as appropriate. a. Samantha would like to determine what the average hourly wage is. Using horizontal analysis, what is the percent change in the average hourly wage between this year and last year? b. Samantha determines the market average wage rate for similar positions is $14.54 per hour. According to the data used in part a), is the factory competitive? What course of action could management take to ensure they either become or remain competitive? c. Samantha would like to create a visual depiction of the average wages for the current and previous year compared to the average wages mentioned in b). Create an appropriate graph or visual, and explain why you selected that type of graph or visual.

Jordan is an economics student entering their senior year of college, and they are compiling some data about their time in school. Jordan requested their transcript and needs to determine the best way to present their academic data. If Jordan wishes to calculate their most frequently occurring course GPA earned during their time in college, then what formula function would be the most appropriate?

Lauren launched her online boutique at the beginning of last year and would like to review her performance so far. She gathered the following information: She would like to use data analytics to evaluate her year. What is the highest net income percentage for the months listed?

The management for Lyra Corp. has decided to work towards streamlining processes across many of their divisions. Each department chair must collect data relevant to their unique functions and operations to assist management with constructing ad hoc reports. If management would like to gain insight into their collections processes, then what information would be best to use for this goal?

Tara oversees materials acquisition at an HVAC company, and she raised some concerns about year-to-year increases in direct materials cost, and she would like to use analytics to help determine why this happened. What can Tara do in order to answer this question?

Larry is the owner and operator of Larry's Pool Services, and he is performing his yearly financial review for the past year. The first step in the process is to look at his sales performance before evaluating any other metrics. Larry decided to use data analytics for the first time. He recently took a course covering basic data analytics and how to apply the methodologies. With all of this in mind, please answer the following questions. a. Larry believes a pie chart will best display his data for evaluation. Do you agree with this assessment? Why or why not? If you disagree, then please explain what graph you would recommend. b. Using Excel or a similar spreadsheet program, create the graph from part a). What observations can you make looking at this graph? c. Based upon your assessment from part b), what recommendations would you have for Larry for next year? Do you believe Larry has done an efficient job of budgeting for his business? What reasons could explain the drastic changes in revenues from June - August?

Chocolate Delights Company manufactures gourmet chocolate candy that it sells online. Chocolate Delights takes customer service very seriously and asks customers if they would like to complete a survey after each purchase. They have been in business for 5 years and experienced a good response when measured in terms of sales revenue. In their first year of operations, they successfully sold 1,050,000 boxes of chocolate containing different flavors at $20.00 per box. In subsequent years, the sales price per box remained constant at $20.00, but year-by-year, the company experienced a 6%, 5%, 8%, and 8% growth in the number of boxes sold per year compared to each previous year. Based on the information above, answer the following: (If necessary, round the number of units sold to whole units since they do not sell fractional chocolates.) a. What is the average sales amount (in dollars) over the company's 5-year lifetime? What is their median sales value over the same span? b. What year made up their largest percentage of the overall sales compared to every other year? Disregarding Year 1, what might explain that increase in sales? c. If you were going to create a graph to display the results of their sales over the company's 5-year history, then what kind of graph would you create, and why? Create a version of the graph you just mentioned.

Accountants are the traditional stewards of accounting information and are in-tune with the financial health of an organization. As data analytics becomes a more prevalent force within the business world, accountants acquire new skills in this area. In doing so, they have become strategic business partners with decision makers. Which of the following is an example of a non-accounting skill expected of modern accountants by management?

The decision makers for Tangerine Corp. decided that they want to be more attuned to examining their operations from a more analytical perspective. They have asked Susanna, a department manager to spearhead this effort and to determine what she may need to get the company on the right path. Susanna needs to explore her current analytics options and identify when they may be useful. What are the four types of data analytics? When is each useful, and how do they differ from one another? Would Susanna be better off selecting just one type of data analytics?