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NEW QUESTION 39
The inventory model that follows the concept that 80% of the value of an inventory is in 20% of the inventory items is the:
Answer: B
Explanation:
The ABC method of inventory control requires management to exert greatest control over the A classification items, which usually include a relatively small percentage of total items but a high percentage of the dollar volume. This method is analogous to the 80/20 rule, which says, for instance, that 20% of the customers account for 80% of the profit.
NEW QUESTION 40
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?
Answer: A
Explanation:
The catalog sales firm is using an online processing system known as an online, real-time system OLRT). OLRT systems handle transactions as they are entered, processing the input and providing output soon enough to affect a current decision making process, e.g., inventory and credit status of phone call orders. The sending of upcoming production schedules and parts orders by and manufacturer's computer to a supplier's computer is an example of electronic data interchange EDI). EDI is the communication of electronic documents directly from one entity's computer to another's computer.
NEW QUESTION 41
An organization has instituted a bring-your-own-device (BYOD) work environment Which of the following policies best addresses the increased risk to the organization's network incurred by this environment?
Answer: A
NEW QUESTION 42
Which of the following steps should an internal auditor take during an audit of an organization's business continuity plans?
1.Evaluate the business continuity plans for adequacy and currency.
2.Prepare a business impact analysis regarding the loss of critical business.
3.Identify key personnel who will be required to implement the plans.
4.Identify and prioritize the resources required to support critical business processes.
Answer: B
NEW QUESTION 43
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