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FP&A Exam Preparation Blog

FP&A Friday: Chapter 3 - Data Gathering

Jul 12, 2018

Join us as we review the FP&A Learning System in our weekly VLOG. This week, let's go through Chapter 3 - Data Gathering.



This week's question is:


FP&A is analyzing the impact of the purchase of new fabricating equipment that will expand the capabilities of operations. After recommending the investment, FP&A learns from operations that they have been informed by facility management that the factory floor will need to be reinforced before the unit is installed and this will interfere with the operation of an adjacent line for a period. This changes the analysis considerably. How could this situation have been better managed?

A. Facility management should have been consulted during the analytics
B. Operations should have made FP&A aware of this information
C. The contract could have excluded surprises of this sort
D. The situation probably could not have been avoided

Watch the video to find out how to determine the solution, and get the correct answer.

Stay tuned for next week's video on Chapter 4 - Industry.

Want more FP&A Friday videos? You can see them all here.