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NEW QUESTION 32
In an economic order quantity EOQ) model, both the costs per order and the holding costs are estimates. If those estimates are varied to determine how much the changes affect the
optimal EOQ, such an analysis would be called a:

• A. Sensitivity analysis.
• B. Critical path method analysis.
• C. Decision analysis.
• D. Forecasting model.

Answer: A

Explanation:
An economic order quantity EOQ) sensitivity analysis involves varying the holding carrying) costs per unit and/or the order costs to determine how much the changes affect the optimal EOQ.

NEW QUESTION 33
Traditional information systems development procedures that ensure proper consideration
of controls may not be followed by users developing end-user computing EUC) applications.
Which of the following is a prevalent risk in the development of EUC applications?

• A. Management decision making may be impaired due to diminished responsiveness to management's requests for computerized information.
• B. Management may incur increased application development and maintenance costs for EUC systems, compared with traditional mainframe) systems.
• C. Management may be less capable of reacting quickly to competitive pressures due to increased application development time.
• D. Management may place the same degree of reliance on reports produced by EUC applications as it does on reports produced under traditional systems development procedures.

Answer: D

Explanation:
End-user developed applications may not be subject to an independent outside review by systems analysts and are not created in the context of a formal development methodology. These applications may lack appropriate standards, controls, quality assurance procedures, and documentation. A risk of end-user applications is that management may rely on them as much as traditional applications.

NEW QUESTION 34
Which of the following should internal auditors be attentive of when reviewing personal data consent and opt-in/opt-out management process?

• A. Whether customers are asked to renew their consent for their data processing at least quarterly.
• B. Whether private data is processed in accordance with the purpose for which the consent was obtained?
• C. Whether customers have an opportunity to opt-out the right to be forgotten from organizational records and systems.
• D. Whether the organization has established explicit and entitywide policies on data transfer to third parties.

Answer: D

NEW QUESTION 35
Which of the following is the most appropriate way lo record each partner's initial Investment in a partnership?

• A. At the value agreed upon by the partners.
• B. At fair value
• C. At book value.
• D. At the original cost.

Answer: D

NEW QUESTION 36
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