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In order to maximize profit, how much of product Y should the organization produce each month?
An organization produces two products, X and Y. The materials used for the production of both products are limited to 500 kilograms (kg) per month. All other resources are unlimited and their costs are fixed. Individual product details are as follows: Product X Product Y Selling price per unit $10...
Which of the following are appropriate reasons for internal auditors to document processes as part of an audit engagement?
Which of the following are appropriate reasons for internal auditors to document processes as part of an audit engagement? 1) To determine areas of primary concern. 2) To establish a standard format for process mapping. 3) To define areas of responsibility within the organization. 4) To assess the performance of...
Which of the following engagement observations would provide the least motivation for management to amend or replace an existing cost accounting system?
Which of the following engagement observations would provide the least motivation for management to amend or replace an existing cost accounting system?A . The distorted unit cost of a service is 50 percent lower than the true cost, while the true cost is 50 percent higher than the competition's cost.B...
A holding company set up a centralized group technology department, using a local area network with a mainframe computer to process accounting information for all companies within the group.
A holding company set up a centralized group technology department, using a local area network with a mainframe computer to process accounting information for all companies within the group. An internal auditor would expect to find all of the following controls within the technology department except:A . Adequate segregation of...
Which of the following stages of group development is associated with accepting team responsibilities?
Which of the following stages of group development is associated with accepting team responsibilities?A . Forming stage.B . Performing stage.C . Norming stage.D . Storming stage.View AnswerAnswer: C
Which of the following methods, if used in conjunction with electronic data interchange (EDI), will improve the organization's cash management program, reduce transaction data input time and errors, and allow the organization to negotiate discounts with EDI vendors based on prompt payment?
Which of the following methods, if used in conjunction with electronic data interchange (EDI), will improve the organization's cash management program, reduce transaction data input time and errors, and allow the organization to negotiate discounts with EDI vendors based on prompt payment?A . Electronic funds transfer.B . Knowledge-based systems.C ....
Which of the following statements is true regarding outsourced business processes?
Which of the following statements is true regarding outsourced business processes?A . Outsourced business processes should not be considered in the internal audit universe because the controls are owned by the external service provider.B . Generally, independence is improved when the internal audit activity reviews outsourced business processes.C . The...
When applied to international economics, the theory of comparative advantage proposes that total worldwide output will be greatest when:
When applied to international economics, the theory of comparative advantage proposes that total worldwide output will be greatest when:A . Each nation's total imports approximately equal its total exports.B . Each good is produced by the nation that has the lowest opportunity cost for that good.C . Goods that contribute...
Which of the following is a disadvantage of selecting a commercial software package rather than developing an application internally?
Which of the following is a disadvantage of selecting a commercial software package rather than developing an application internally?A . Lack of flexibility.B . Incompatibility with client/server technology.C . Employee resistance to change.D . Inadequate technical support.View AnswerAnswer: A
What is the closing inventory if the periodic inventory system is used?
During the last year, an organization had an opening inventory of $300,000, purchases of $980,000, sales of $1,850,000, and a gross margin of 40 percent . What is the closing inventory if the periodic inventory system is used?A . $170,000B . $280,000C . $300,000D . $540,000View AnswerAnswer: A
