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NEW QUESTION 52
Which of the following is useful for forecasting the required level of inventory?
1.Statistical modeling.
2.Information about seasonal variations in demand.
3.Knowledge of the behavior of different business cycles.
4.Pricing models linked to seasonal demand.
Answer: D
NEW QUESTION 53
The practice of maintaining a test program library separate from the production program library is an example of:
Answer: D
Explanation:
This separation is an organizational control. Organizational controls concern the proper segregation of duties and responsibilities within the information systems department.
Although proper segregation is desirable, functions that would be considered incompatible if performed by a single individual in a manual activity are often performed through the use of an information systems program or series of programs. Thus, compensating controls may be necessary, such as library controls, effective supervision, and rotation of personnel. Segregating test programs makes concealment of unauthorized changes in production programs more difficult.
NEW QUESTION 54
The value of the domestic currency in relation to foreign currencies is:
Answer: C
Explanation:
Exchange rates are determined by the forces of supply and demand on the exchange markets. Often other forces try to intervene in this process of exchange rate determination, but these reflect only short-run policies. An example of this type of policy would be government or central bank intervention in the international money markets.
NEW QUESTION 55
A widely used approach that managers use to recognize uncertainty about individual items and to obtain an immediate financial estimate of the consequences of possible prediction errors is:
Answer: A
Explanation:
Sensitivity analysis determines how a result varies with changes in a given variable or parameter in a mathematical decision model. For example, in a present value analysis, a manager might first calculate the net present value or internal rate of return assuming that a new asset has a 10-year life. The NPV or IRR can then be recalculated using a 5-year life to determine how sensitive the result is to the change in the assumption. An international not for- profit organization finances medical research. The majority of its revenue and support comes from fund-raising activities, investments, and specific grants from an initial sponsoring corporation. The organization has been in operation over 15 years and has a small internal audit department. The organization has just finished a major fundraising drive that raised US $500 million for the current fiscal period. The following are selected data from recent financial statements US dollar figures in millions):
NEW QUESTION 56
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