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NEW QUESTION 41
Which of the following is on advantage of a decentralized organizational structure, as opposed to a centralized structure?

A. Strong internal controlsB. Larger talent poolC. Greater cost-effectivenessD. Increased economies of scale

Answer: B

 

NEW QUESTION 42
Which of the following is a likely result of outsourcing?

A. Decreased focus on costsB. Increased importance of market strategy.C. Decreased sensitivity to government regulationD. Increased dependence on suppliers.

Answer: C

 

NEW QUESTION 43
The decision to implement enhanced failure detection and back-up systems to improve data integrity is an example of which risk response?

A. Risk reduction.B. Risk sharing.C. Risk avoidance.D. Risk acceptance.

Answer: A

 

NEW QUESTION 44
A major justification for investments in computer-integrated manufacturing (CIM) projects is:

A. Stabilization of market share.B. Reduction in the costs of spoilage, reworked units, and scrap.C. Lower carrying amount and depreciation expense for factory equipment.D. Increased working capital.

Answer: B

Explanation:
Automating and computerizing production processes requires a substantial investment in fixed assets and an increase in risk because of greater fixed costs. CIM also necessitates an increase in software costs and extensive worker retraining. However, the costs of spoilage, rework, and scrap are reduced along with labor costs. The qualitative advantages of CIM are increased flexibility, shorter manufacturing lead time, quicker development of new products, better product delivery and service, faster response to market changes, and improved competitiveness.

 

NEW QUESTION 45
An organization and its trading partner rely on a computer-to-computer exchange of digital business documents. Which of the following best describes this scenario?

A. Use of electronic data InterchangeB. Use of a local area networkC. Use of a database management systemD. Use of a central processing unit

Answer: A

 

NEW QUESTION 46
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