IAA CIA Part 3 Practice Exam Online, Best Exam Materials

Question #1

Which of the following is an example of an efficiency measure?

A. he rate of absenteeism

B. he goal of becoming a leading manufacturer

C. he number of insurance claims processed per day

D. he goal of increasing market share

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Correct Answer: C

Question #2

Which must be part of any risk model involving inventory valuation?

A. roduct warranty policies

B. endor pricing policies

C. nventory shrinkage expense

D. nnual sales forecasts

View answer

Correct Answer: C

Question #3

Because of competitive pressures to be more responsive to their customers, some organizations have connected their internal personal computer networks through a host computer to outside networks. A risk of this practice is that:

A. iruses may gain entry to one or more company systems

B. ploaded files may not be properly edited and validated

C. ata downloaded to the personal computers may not be sufficiently timely

D. oftware maintenance on the personal computers may become more costly

View answer

Correct Answer: A

Question #4

Advantages of life cycle methodologies are:

A. ower overall development costs when requirements change frequently

B. bility to give users a functioning system quickly

C. educed application development time to achieve a functioning system

D. nhanced management and control of the development process

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Correct Answer: D

Question #5

The economic reasoning dictating that each nation specialize in the production of goods that it produces relatively more efficiently than other nations and import those goods that are produced relatively more efficiently by other nations is called the doctrine of:

A. fficient trade

B. iminishing returns

C. elative competition

D. omparative advantage

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Correct Answer: D

Question #6

An automobile and personal property insurer has decentralized its information processing to the extent that headquarters has less processing capacity than any of its regional processing centers. These centers are responsible for initiating policies, communicating with policyholders, and adjusting claims. The company uses leased lines from a national telecommunications company. Initially, the company thought there would be little need for interregional communication, but that has not been the case. The compa

A. ack of awareness at headquarters of the state of processing

B. ncreased cost and complexity of network traffic

C. nterference of the mirrored data with original source data

D. onfusion on the part of insurance agents about where customer data are stored

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Correct Answer: B

Question #7

Which one of the following input controls or edit checks would catch certain types of errors within the payment amount field of a transaction?

A. ecord count

B. cho check

C. heck digit

D. imit check

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Correct Answer: D

Question #8

While auditing a marketing department, the internal auditor discovered that the product life cycle model was used to structure the marketing mix. The manager has asked the auditor for advice about increasing advertising of various products. During which stage of the life cycle would it be appropriate to advertise that the company's product is the lowest price and best quality of all competitors?

A. ntroduction stage

B. rowth stage

C. aturity stage

D. ecline stage

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Correct Answer: C

Question #9

Dale has 20 days to complete production of an order for an important customer. The customer wants 96 units of product that may be painted either red or white. The red units can be produced at a rate of 4 per day. The white units, because of a different quality of paint, can be produced at a rate of 7 per day. The materials for the red units cost US $80 each, while the white units cost US $120 each. Dale wants to keep costs at a minimum.What is the constraint that expresses the number of units to be produced

A. R + 7W = 20

B. R/4) + (W-7) 20

C. + W=20

D. R + 7W=96

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Correct Answer: B

Question #10

At year-end, the entity has a book value per share of:

A. S $10

B. S $15

C. S $21

D. S $25

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Correct Answer: D

Question #11

In the organization of the IT function, the most important separation of duties is:

A. ot allowing the data librarian to assist in data processing operations

B. ssuring that those responsible for programming the system do not have access to data processing operations

C. aving a separate information officer at the top level of the organization outside of the accounting function

D. sing different programming personnel to maintain utility} programs from those who maintain the application programs

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Correct Answer: B

Question #12

The techniques used in analyzing the problem is best described as:

A. imultaneously theory

B. ntegrated auto aggressive-moving average ARIMA) modeling

C. inear programming

D. ifferential calculus

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Correct Answer: A

Question #13

Of the following, the greatest advantage of a database server) architecture is:

A. ata redundancy can be reduced

B. onversion to a database system is inexpensive and can be accomplished quickly

C. ultiple occurrences of data items are useful for consistency checking

D. ackup and recovery procedures are minimized

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Correct Answer: A

Question #14

Which of the following is the most effective user account management control in preventing the unauthorized use of a computer system?

A. anagement enforces an aggressive password policy that requires passwords to be 10 characters long, to be nonreusable, and to be changed weekly

B. n account manager is responsible for authorizing and issuing new accounts

C. he passwords and usernames of failed log-in attempts are logged and documented in order to cite attempted infiltration of the system

D. mployees are required to renew their accounts semiannually

View answer

Correct Answer: D

Question #15

Under a total quality management (TQM) approach,

A. easurement occurs throughout the process, and errors are caught and corrected at the source

B. uality control is performed by highly trained inspectors at the end of the production process

C. pper management assumes the primary responsibility for the quality of the products and services

D. large number of suppliers are used in order to obtain the lowest possible prices

View answer

Correct Answer: A

Question #16

Basic earnings per share for entity is approximately:

A. S $1 73

B. S $1

C. S $2

D. S$227

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Correct Answer: A

Question #17

Consider the following computer applications:(a) At a catalog sales firm, as phone orders are entered into their computer, both inventory and credit are immediately checked.(b) A manufacturer's computer sends the coming week's production schedule and parts orders to a supplier's computer.Which statement below is true for these applications?

A. oth applications are examples of electronic data interchange EDI

B. oth applications are examples of online real-time pr easing OLRT

C. he first application is an example of EDI and the second an example of OLRT

D. he first application is an example of OLRT and the second an example of EDI

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Correct Answer: D

Question #18

A traditional quality control process in manufacturing consists of mass inspection of goods only at the end of a production process. A major deficiency of the traditional control process is that:

A. t is expensive to do the inspections at the end of the process

B. t is not possible to rework defective items

C. t is not 100% effective

D. t does not focus on improving the entire production process

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Correct Answer: D

Question #19

What ensures that a company is complying with the documented quality management systemQMS: procedures and ISO 9000 standards?

A. he internal audit

B. he registrar

C. n-site inspections by an external auditor

D. anagement commitment

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Correct Answer: A

Question #20

Managers at a consumer products company purchased personal computer software from only recognized vendors and prohibited employees from installing nonauthorized software on their personal computers. To minimize the likelihood of computer viruses infecting any of its systems, the company should also:

A. estore infected systems with authorized versions

B. ecompile infected programs from source code backups

C. nstitute program change control procedures

D. est all new software on a stand-alone personal computer

View answer

Correct Answer: D

Question #21

A tight monetary policy is frequently cited as an important policy instrument for fighting inflation. Keynesian n:mists believe that one of the possible undesirable side effects of such a policy is:

A. educed business investment due to higher interest rates

B. educed business investment due to lower interest rates

C. ncreased business investment due to decreased government spending

D. ncreased business investment because of reduced confidence in business

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Correct Answer: A

Question #22

Which one of the following is not a characteristic of an innovative manufacturing company?

A. mphasis on continuous improvement

B. esponsiveness to the changing manufacturing environment

C. mphasis on existing products

D. mproved customer satisfaction through product quality

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Correct Answer: C

Question #23

Which of the following would Batchelder most likely use as a record count?

A.

B.

C. 10

D. 00

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Correct Answer: B

Question #24

The entity has an accounts receivable balance of:

A. S $12

B. S $26

C. S $36

D. S $66

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Correct Answer: B

Question #25

The trough of a business cycle is generally characterized by:

A. hortages of essential raw materials and rising costs

B. ncreasing purchasing power and increasing capital investments

C. ising costs and an unwillingness to risk new investments

D. nused productive capacity and an unwillingness to risk new investments

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Correct Answer: D

Question #26

Which of the following statements about voice communications is true?

A. odern voice recognition input have large vocabularies and short training periods

B. voice output device converts speech into digital data

C. ell phones and PCS services use the same frequency radio waves

D. agers can alert users to the receipt of messages but cannot transmit text

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Correct Answer: A

Question #27

Convertible bonds and bonds issued with warrants differ in that:

A. onvertible bonds have lower coupon rates than straight bonds, while bonds issued with warrants have higher coupon rates than straight bonds

B. onvertible bonds have higher coupon rates than straight bonds, while bonds issued with warrants have lower coupon rates than straight bonds

C. onvertible bonds remain outstanding after the bondholder exercises the right to become an ordinary shareholder, while bonds that are issued with warrants do not

D. onds that are issued with warrants remain outstanding after the bondholder exercises the right to become an ordinary shareholder, while convertible bonds do not

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Correct Answer: D

Question #28

If the value of the U.S. dollar in foreign currency markets changes from US $1 = .95 euros to US $1 = .90 euros.

A. he euro has depreciated against the dollar

B. roducts imported from Europe to the U

C.

D.

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Correct Answer: B

Question #29

Which of the following criteria would be most useful to a sales department manager in evaluating the performance of the manager's customer-service group?

A. he customer is always right

B. ustomer complaints should be processed promptly

C. mployees should maintain a positive attitude when dealing with customers

D. ll customer inquiries should be answered within 7 days of receipt

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Correct Answer: D

Question #30

Which of the following statements accurately describes the impact that automation has on the controls normally present in a manual system?

A. ransaction trails are more extensive in a computer-based system than in a manual system because there is always a one-for-one correspondence between data entry and output

B. esponsibility for custody of information assets is more concentrated in user departments in a computer- based system than it is in a manual system

C. ontrols must be more explicit in a computer-based system because many processing points that present opportunities for human judgment in a manual system are eliminated

D. he quality of documentation becomes less critical in a computer-based system than it is in a manual system because data records are stored in machine-readable files

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Correct Answer: C

Question #31

Which of the following is not a required element of a contract?

A. egality

B. onsideration

C. egal capacity

D. writing

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Correct Answer: D

Question #32

A local area network LAN) is best described as a(n):

A. omputer system that connects computers of all sizes, workstations, terminals, and other devices within a limited proximity

B. ystem to allow computer users to meet and share ideas and information

C. lectronic library containing millions of items of data that can be reviewed, retrieved, and analyzed

D. ethod to offer specialized software, hardware, and data handling techniques that improve effectiveness and reduce costs

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Correct Answer: A

Question #33

The purpose of input controls is to ensure the:

A. uthorization of access to data files

B. uthorization of access to program files

C. ompleteness, accuracy, and validity of updating

D. ompleteness, accuracy, and validity of input

View answer

Correct Answer: D

Question #34

If all else is equal, entities with higher profit margins require less additional financing for any sales growth rate. If the profit marlin of an entity increased, the funds-needed line would shift:

A. p and become less steep

B. p and become more steep

C. own and become less steep

D. own and become more steep

View answer

Correct Answer: C

Question #35

Which type of risks assumed by management are often drivers of organizational activities?

A. pportunity risks

B. nherent risks

C. eneral project management risks

D. ontrol risks

View answer

Correct Answer: A

Question #36

Company F applies a target pricing and costing approach. The following information about costs and revenues of Company F's product are available for the year just ended:Company F plans to increase unit sales to 80,000 by reducing the product's unit price to US $320. If Company F desires a unit target operating income of 12%, by what amount must it reduce the full cost per unit?

A. S $32

B. S $38

C. S $70

D. S $80

View answer

Correct Answer: C

Question #37

Which of the following are intermediaries between sellers and buyers?I). AgentII). BrokerIII). ConsigneeIV). Consumer

A. and II only

B. and III only

C. , II, and III only

D. , II, III, and Isl

View answer

Correct Answer: C

Question #38

Unfortunately, the company has not revised its contingency plan since the time when its data processing was mostly centralized at headquarters. The existing plan is likely to be out of date because of:

A. hanges in equipment, data, and software

B. nadequate processing capability at headquarters

C. ack of arrangements for a backup site for headquarters

D. ersonnel turnover at regional centers

View answer

Correct Answer: A

Question #39

Which of the following statements is true regarding user-developed applications (UDAs) andtraditional IT applications?

A. DAs and traditional IT applications typically follow a similar development life cycle

B. UDA usually includes system documentation to illustrate its functions, and IT-developed applications typically do not require such documentation

C. nlike traditional IT applications, UDAs typically are developed with little consideration of controls

D. T testing personnel usually review both types of applications thoroughly to ensure they were developed properly

View answer

Correct Answer: D

Question #40

Which of the following types of controls is not described in the IT Governance Institute's Control Objectives for information and Related Technology COBIT)?

A. eneral controls

B. xchange controls

C. rocess controls

View answer

Correct Answer: B

Question #41

The term "short-selling" is the:

A. elling of a security that was purchased by borrowing money from a broker

B. elling of a security that is not owned by the seller

C. elling of all the shares you own in an entity in anticipation that the price will decline dramatically

D. etting that a stock will increase by a certain amount within a given period of time

View answer

Correct Answer: B

Question #42

A bank has two drive-in lanes to serve customers:The process of making sure that the model measures what it is supposed to measure is called:

A. tatistical inference

B. ypothesis testing

C. onfidence coefficient analysis

D. alidation

View answer

Correct Answer: D

Question #43

The appropriate discount rate to use in valuing a business combination is the:

A. ombined entity's cost of debt

B. cquirer's weighted average cost of capital

C. cquirer's cost of equity

D. ombined entity's cost of equity

View answer

Correct Answer: D

Question #44

The network diagram and the corresponding activity cost chart for a manufacturing project at Networks, Inc., are presented below. The numbers in the diagram are the expected times (in days) to perform each activity in the project.The expected time of the critical path is:

A. 2

B. 3

C. 1

D. 1

View answer

Correct Answer: B

Question #45

When a new application is being created for widespread use in a large organization, the principal liaison between the IT function and the rest of an organization is normally a(n):

A. nd user

B. pplication programmer

C. aintenance programmer

D. ystems analyst

View answer

Correct Answer: D

Question #46

Good planning will help an organization restore computer operations after a processing outage.Good recovery planning should ensure that:

A. ackup/restart procedures have been built into job streams and programs

B. hange control procedures cannot be bypassed by operating personnel

C. lanned changes in equipment capacities are compatible with projected workloads

D. ervice level agreements with owners of applications are documented

View answer

Correct Answer: A

Question #47

In which product-mix pricing strategy is it appropriate for the seller to accept any price that exceeds the storage and deliver} casts for the product?

A. y-product pricing

B. ptional-product pricing

C. aptive-product pricing

D. roduct-bundle pricing

View answer

Correct Answer: A

Question #48

A controller became aware that a competitor appeared to have access to the company's pricing information. The internal auditor determined that the leak of information was occurring during the electronic transmission of data from branch offices to the head office.Which of the following controls would be most effective in preventing the leak of information?

A. synchronous transmission

B. ncryption

C. se of fiber-optic transmission lines

D. se of passwords

View answer

Correct Answer: B

Question #49

A firm must decide the mix of production of Product X and Product Y. There are only two resources used in the two products, resources A and B. Data related to the two products is given in the following table:What is the appropriate objective function to maximize profit?

A. X + 7Y

B. X + Y

C. X + 6Y

D. X + 8Y

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Correct Answer: C

Question #50

Only two companies manufacture Product A. The finished product is identical regardless of which company manufactures it. The cost to manufacture Product A is US $1, and the selling price is US $2. One company considers reducing the price to achieve 100c'% market share but fears the other company will respond by further reducing the price. Such a scenario would involve a:

A. o-win strategy

B. ual-win strategy

C. ne win-one lose strategy

D. eutral strategy

View answer

Correct Answer: A

Question #51

The estimated demand for pretzels at the next home football game using an expected value approach is:

A. ,000 pretzels

B. ,400 pretzels

C. ,000 pretzels

D. ,000 pretzels

View answer

Correct Answer: B

Question #52

Object technology has become important in companies' strategic use of information systems because of its potential to:

A. ermit quicker and more reliable development of systems

B. aintain programs written in procedural languages

C. inimize data integrity violations in hierarchical databases

D. treamline the traditional "waterfall" systems development methodology

View answer

Correct Answer: A

Question #53

If two entities, entity' - and entity Y. are alike in all respects except that entity X employs more debt financing and less equity financing than entity Y does. which of the following statements is true?

A. ntity X has more net earnings variability than entity Y

B. ntity X has more operating earnings variability than entity Y

C. ntity X has less operating earnings variability than entity Y

View answer

Correct Answer: A

Question #54

Intensive distribution is most likely to be used for:

A. hopping goods

B. pecialty goods

C. onvenience goods

D. nsought goods

View answer

Correct Answer: C

Question #55

Which of the following is a risk that is higher when an electronic funds transfer EFT system is used?

A. mproper change control procedures

B. nauthorized access and activity

C. nsufficient online edit checks

D. nadequate bad -ups and disaster recovery procedures

View answer

Correct Answer: B

Question #56

Under a total quality management TOM) approach:

A. easurement occurs throughout the process, and errors are caught and corrected at the source

B. uality control is performed by highly trained inspectors at the end of the production process

C. pper management assumes the primary responsibility for the quality of the products and services

D. large number of suppliers are used in order to obtain the lowest possible prices

View answer

Correct Answer: A

Question #57

The process of monitoring evaluating, and modifying a system as needed is referred to as systems:

A. nalysis

B. easibility study

C. aintenance

D. mplementation

View answer

Correct Answer: C

Question #58

If a supervisor fails to give an employee a negative evaluation because of fear of damaging a good working relationship, this is known as the:

A. eniency error

B. egency effect

C. alo effect

D. ontrast error

View answer

Correct Answer: A

Question #59

What coefficient of correlation results from the following data?

A.

B. 1

C. 1

D. annot be determined from the data given

View answer

Correct Answer: B

Question #60

Listed below are costs of quality that a manufacturing company has incurred throughout its operations.The U.S. dollar amount of the costs of quality classified as prevention costs for the manufacturing firm would be:

A. S$643,000

B. S$701,000

C. S$736,000

D. S$768,000

View answer

Correct Answer: B

Question #61

The following data on variables x and y was collected from June to October.The correlation coefficient between variables x and y is nearest to:

A.

B. 1

C.

D.

View answer

Correct Answer: B

Question #62

Evaluating performance is not done to:

A. etermine the amount of nondiscriminatory benefits that each employee deserves

B. ssess the available human resources of the firm

C. otivate the employees

D. etermine which employees deserve salary increases

View answer

Correct Answer: A

Question #63

The cost of statistical quality control in a product quality cost system is categorized as a n)

A. nternal failure cost

B. raining cost

C. xternal failure cost

D. ppraisal cost

View answer

Correct Answer: D

Question #64

What does the following scatter gram suggest?

A. ales revenue is inversely related to training costs

B. he training program is not effective

C. raining costs do not affect sales revenue

D. everal data points are incorrectly plotted

View answer

Correct Answer: C

Question #65

The use of teams in total quality management (TQM) is important because:

A. ell-managed teams can be highly creative and are able to address complex problems better than individuals can

B. eams are quicker to make decisions, thereby helping to reduce cycle time

C. mployee motivation is higher for team members than for individual contributors

D. he use of teams eliminates the need for supervision, thereby allowing a company to become leaner and more profitable

View answer

Correct Answer: A

Question #66

The cost of scrap, rework, and tooling changes in a product quality cost system is categorized as a n)

A. raining cost

B. xternal failure cost

C. nternal failure cost

D. revention cost

View answer

Correct Answer: C

Question #67

The primary objective of security software is to:

A. ontrol access to information system resources

B. estrict access to prevent installation of unauthorized utility software

C. etect the presence of viruses

D. onitor the separation of duties within applications

View answer

Correct Answer: A

Question #68

Which of the following is a risk that is higher when an electronic funds transfer EFT system is used?

A. mproper change control procedures

B. nauthorized access and activity

C. nsufficient online edit checks

D. nadequate bad -ups and disaster recovery procedures

View answer

Correct Answer: B

Question #69

Use of unlicensed software in an organization:I). Increases the risk of introducing viruses into the organizationII). Is not a serious exposure if only low-cost software is involvedIII). Can be detected by software checking routines that run from a network server

A. only

B. and II only

C. , II, and III

D. and III only

View answer

Correct Answer: D

Question #70

An example of secured short-term financing is:

A. ommercial paper

B. warehouse receipt

C. revolving credit agreement

D. rade credit

View answer

Correct Answer: B

Question #71

A company with many branch stores has decided to use its best-performing store as a benchmark organization for the purpose of analyzing the accuracy and reliability of branch store financial reporting.Which one of the following is the most likely measure to be included in a financial benchmark?

A. igh turnover of employees

B. igh level of employee participation in setting budgets

C. igh amount of bad debt write-offs

D. igh number of suppliers

View answer

Correct Answer: C

Question #72

The costs of quality that are incurred in detecting units of product that do not conform to product specifications are referred to as

A. revention costs

B. ppraisal costs

C. ework costs

D. ailure costs

View answer

Correct Answer: B

Question #73

Based upon the data derived from the regression analysis, 420 maintenance hours in a month would mean the maintenance costs rounded to the nearest U dollar) would be budgeted at

A. $3,780

B. $3,600

C. $3,790

D. $3,746

View answer

Correct Answer: D

Question #74

An entity has a foreign-currency-denominated trade payable, due in 60 days. To eliminate the foreign currency exchange-rate risk associated with the payable, the entity could:

A. ell foreign currency forward today

B. ait 60 days and pay the invoice by purchasing foreign currency in the spot market at that time

C. uy foreign currency forward today_

D. orrow foreign currency today, convert it to domestic currency on the spot market, and invest the funds in a domestic bank deposit until the invoice payment date

View answer

Correct Answer: C

Question #75

A plumbing company, a wholesale distributor, supplies plumbing contractors and retailers throughout the Northeast on a next-day delivery. basis. The company has a centrally located warehouse to accept receipts of plumbing supplies. The warehouse has a single dock to accept and unload railroad freight cars during the night. It takes 5 hours to unload each freight car. The company's prior records indicate that the number of freight cars that arrive in the course of a night range from zero to five or mare, wit

A. nteger programming

B. inear programming

C. onte Carlo simulation

D. egression analysis

View answer

Correct Answer: C

Question #76

Company J produces two components: A-1 and A-2. The unit throughput contribution margins for A-1 and A-2 are US $150 and US $300, respectively. Each component must proceed through two processes: Operation 1 and Operation 2. The capacity of Operation 1 is 180 machine hours, with A-1 and A-2 requiring 1 hour and 3 hours, respectively.Furthermore, Company J can sell only 45 units of A-1 and 100 units of A-2. However,Company J is considering expanding Operation 1's capacity by 90 machine hours at a cost of US $

A. ption A

B. ption C

C. ption C

D. ption D

View answer

Correct Answer: C

Question #77

Value engineering is:

A. policy of seeking continuous improvement in all phases of company{ activities

B. method of determining prices based on a cost determination

C. n element of a marketing mix strategy

D. systematic approach to assessing all aspects of cost buildup for a product

View answer

Correct Answer: D

Question #78

Inefficient use of excess computer equipment can be controlled by

A. ontingency planning

B. ystem feasibility studies

C. apacity planning

D. xception reporting

View answer

Correct Answer: C

Question #79

When a specified level of safety stock is carried for an item in inventory, the average inventory level for that item:

A. ecreases by the amount of the safety stock

B. s one-half the level of the safety stock

C. ncreases by one-half the amount of the safety stock

D. ncreases by the amount of the safety stock

View answer

Correct Answer: D

Question #80

An organization sells a product for which demand is uncertain. Management would like to ensure that there is sufficient inventory on hand during periods of high demand so that it does not lose sales and customers). To do so, the organization should:

A. eep a safety stock

B. se a just-in-time inventory system

C. mploy a materials requirements planning system

D. eep a master production schedule

View answer

Correct Answer: A

Question #81

Correlation is a term frequently used in conjunction with regression analysis and is measured by the value of the coefficient of correlation, r. The best explanation of the value r is that it:

A. s always positive

B. nterprets variances in terms of the independent variable

C. anges in size from negative infinity to positive infinity

D. s a measure of the relative relationship between two variables

View answer

Correct Answer: D

Question #82

What technique could be used to prevent the input of alphabetic characters into an all numeric identification number?

A. sequence check

B. check digit

C. record count

D. format check

View answer

Correct Answer: D

Question #83

The primary objective of security software is to:

A. ontrol access to information system resources

B. estrict access to prevent installation of unauthorized utility software

C. etect the presence of viruses

D. onitor the separation of duties within applications

View answer

Correct Answer: A

Question #84

What type of computer processing system is characterized by data that are assembled from more than one location and records that are updated immediately?

A. ersonal computer systems

B. ata compression systems

C. atch processing systems

D. nline, real-time systems

View answer

Correct Answer: D

Question #85

When comparing two companies, if all else is equal, the entity that has a higher dividend payout ratio will have a:

A. igher marginal cost of capital

B. ower debt ratio

C. igher investment opportunity schedule

D. igher price to earnings ratio

View answer

Correct Answer: A

Question #86

The US dollar amount of the costs of quality classified as preventive costs for the manufacturing firm would be:

A. S $643,000

B. S $701,000

C. S $736,000

D. S $768,000

View answer

Correct Answer: B

Question #87

Which of the following is a product cost for a manufacturing company?

A. nsurance on the corpor

B. roperty taxes on a fact

C. epreciation on a salesperson's vehicle

D. he salary of a sales manager

View answer

Correct Answer: B

Question #88

Focusing on customers, promoting innovation, learning new philosophies, driving out fear, and providing extensive training are all elements of a major change in organizations. These elements are aimed primarily at:

A. opying leading organizations to better compete with them

B. ocusing on the total quality of products and services

C. eing efficient and effective at the same time, in order to indirectly affect profits

D. anaging costs of products and services better, in order to become the low-cost provider

View answer

Correct Answer: B

Question #89

To reduce security exposure when transmitting proprietary data communication lines, a company should use:

A. synchronous modems

B. uthentication techniques

C. all-back procedures

D. ryptographic devices

View answer

Correct Answer: D

Question #90

Under throughput costing, the only cost considered to be truly variable in the short run is:

A. irect materials

B. irect labor

C. anufacturing overhead

D. ll manufacturing costs are considered variable

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Correct Answer: D

Question #91

Various tools are employed to control large scale projects. They include all of the following except:

A. ERT

B. PM

C. tatistical process control

D. antt charts

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Correct Answer: C

Question #92

The calculation of an economic order quantity EOQ) considers:

A. he purchasing manager's salary_

B. corporate charge for advertising expenses

C. he shipping costs to deliver the product to the customer

D. apital costs

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Correct Answer: D

Question #93

Consideration consists of:

A. omething with monetary value

B. ach party's receiving an actual benefit only

C. wo promises

D. egal sufficiency and bargained-for exchange

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Correct Answer: D

Question #94

A characteristic of the basic economic order quantity EOQ) model is that it:

A. s relatively insensitive to error

B. hould not be used when carrying costs are large in relation to procurement costs

C. s used when product demand, lead-time, and ordering costs are uncertain

D. hould not be used in conjunction with computerized perpetual inventory systems

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Correct Answer: A

Question #95

The most important component of quality control is:

A. nsuring goods and services conform to the design specifications

B. atisfying upper management

C. onforming with ISO-9000 specifications

D. etermining the appropriate timing of inspections

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Correct Answer: A

Question #96

Traditional information systems development and operational procedures typically involve four functional areas. The systems analysis function focuses on identifying and designing systems to satisfy organizational requirements. The programming function is responsible for the design, coding, testing, and debugging of computer programs necessary to implement the systems designed by the analysis function. The computer operations function is responsible for data preparation, program/job execution, and system mai

A. ystems analysis function

B. rogramming function

C. omputer operations function

D. ser function

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Correct Answer: A

Question #97

Which of the following is not an appropriate measure of quality?

A. arket share

B. elivery performance

C. ustomer satisfaction

D. aw materials costs

View answer

Correct Answer: D

Question #98

The cost of scrap, rework, and tooling changes in a product quality cost system is categorized as a (n):

A. raining cost

B. xternal failure cost

C. nternal failure cost

D. revention cost

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Correct Answer: C

Question #99

An entity has 10.000 outstanding shares with a market value of US $25 each. It just paid a US $1 per share dividend. Dividends are expected to grow at a constant rate of 10%. If flotation costs are 5% of the selling price, the cost of new equity financing is calculated by the following formula.

A. ption A

B. ption B

C. ption C

D. ption D

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Correct Answer: C

Question #100

Which of the following are essential elements of the audit trail in an electronic data interchange EDI) system?

A. etwork and sender/recipient acknowledgments

B. essage directories and header segments

C. ontingency and disaster recovery plans

D. rading partner security and mailbox codes

View answer

Correct Answer: A

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