Bronco Company’s management accounting team uses the results from particular data analytics to select its optimal risk response to key risks. What analytic type does this behavior represent? [Refer to Exhibit 2.2 on p. 39.]

a. Diagnostic
b. Prescriptive
c. Predictive
d. Descriptive

Transcribed Image Text:

Data Analytic Question Answered Management Accounting Analysis Example Type Descriptive Diagnostic Predictive Prescriptive What is happening? Why is it happening? What is likely to happen? Create a profit and loss analysis of current products (games, virtual reality headsets, controllers) based on historical financial performance data. Conduct an analysis that identifies the drivers of customers' most valued particular product preferences (features, platforms, consoles, multi- player capabilities). Forecast the financial impact (in terms of lost revenue) from the risk that competitors introduce new games with innovative and popular features. What do I need to do? Build a model that informs employees about specific choices to make across the value chain (from game design to distribution to marketing to aftermarket customer interfaces) to optimize profitability.