PTD12 Flashcards
The two main variables that contribute to increases in a nation’s real gross domestic product (GDP) are labor productivity and Definition of the labor force. Inflation rate. Quality of output. Total worker hours.
Total worker hours.
This Answer is Correct
This answer is correct. The major components of real GDP are total worker hours and labor productivity.
Which of the following is true about denial-of-service attacks?
I. A denial-of-service attack takes advantage of a network communications protocol to tie up the server’s communication ports so that legitimate users cannot gain access to the server.
II. If the denial-of-service attack is successful, the attacker can gain access to unprotected resources on the server.
I only.
II only.
Both I and II.
Neither I nor II.
I only.
This Answer is Correct
A denial-of-service attack prevents legitimate users from accessing the system by flooding the server with hundreds of incomplete access requests. The object of the attack is to prevent access to the system: the attacker does not actually gain access to information on the system.
Jiffy Grill has an ERP system. It has assigned responsibility for determining who has what access rights within the ERP system. This assignment mostly likely was to: Internal auditors. Other personnel. Management Support functions
Support functions
This Answer is Correct
(Correct!) This answer is correct because support functions are mostly likely to have responsibility for determining system access.
A short-term speculative rise in the worldwide value of the domestic currency could be moderated by a central bank decision to
Sell domestic currency in the foreign exchange market.
Buy domestic currency in the foreign exchange market.
Sell foreign currency in the foreign exchange market.
Increase domestic interest rates.
Sell domestic currency in the foreign exchange market.
This Answer is Correct
(Correct!) A short-term speculative rise in the worldwide value of the domestic currency could be moderated by a central bank deciding to sell domestic currency in the foreign exchange market. The sale of domestic currency would increase the supply of the domestic currency in the market and, thus, dampen the rising value of the domestic currency.
Which of the following is not one of the four perspectives of the balanced scorecard? Customer perspective. Learning and growth perspective. Internal business processes perspective. Research and development perspective.
Research and development perspective.
This Answer is Correct
This answer is correct. Research and development is part of the learning and growth perspective.
Which of the following will cause a shift in the supply curve of a product?
(This question is CIA adapted)
Changes in the price of the product.
Changes in production taxes.
Changes in consumer tastes.
Changes in the number of buyers in the market.
Changes in production taxes.
This Answer is Correct
A shift in the supply curve may result from (1) changes in production technology, (2) changes or expected changes in resource prices, (3) changes in the prices of other goods, (4) changes in taxes or subsidies, (5) changes in the number of sellers in the market, and (6) expectations about the future price of the product. This item identifies changes in production taxes, which will alter the supply curve.
Bitcoin uses a(n) \_\_\_\_\_\_\_\_\_\_\_\_\_\_ ledger on a \_\_\_\_\_\_\_\_\_\_\_\_\_\_ network. Accounting; reticulated spline Centralized; client-server. Distributed; peer-to-peer Wallet; peer-to-peer
Correct! The ledger is distributed on a peer-to-peer network.
Which of the statements best describes the concept of six-sigma quality? 10 defects per million. 3.4 defects per million. 6.0 defects per million. 100 defects per million.
3.4
This answer is correct. Six-sigma is a statistical measure expressing how close a product comes to its quality goal. Six-sigma is 99.999997% perfect with a 3.4 defects per million parts.
Which of the following scenarios would encourage a company to use short-term loans to retire its 10-year fixed-rate callable bonds that have five years until maturity?
The company expects interest rates to increase over the next five years.
Interest rates have increased over the last five years.
Interest rates have declined over the last five years.
The company is experiencing cash flow problems.
Interest rates have declined over the last five years.
If interest rates have declined over the last five years, a company can currently borrow at a lower interest rate than that on the older, fixed-rate debt. Thus, a company would be encouraged to replace the outstanding fixed-rate bonds with short-term borrowings that have a lower interest cost.
An employee mistakenly enters April 31 in the date field. Which of the following programmed edit checks offers the best solution for detecting this error? Online prompting. Mathematical accuracy. Preformatted screen. Reasonableness.
Reasonableness.
April has only 30 days. The reasonableness test will catch this error.
What is the primary objective of data security controls?
To establish a framework for controlling the design, security, and use of computer programs throughout an organization.
To ensure that storage media are subject to authorization prior to access, change, or destruction.
To formalize standards, rules, and procedures to ensure that the organization’s controls are properly executed.
To monitor the use of system software to prevent unauthorized access to system software and computer programs.
To ensure that storage media are subject to authorization prior to access, change, or destruction.
This Answer is Correct
Ensuring that accessing, changing, or destroying storage media is subject to authorization is, in fact, a primary objective of data security controls.
Breakeven analysis assumes over the relevant range that Total costs are linear. Fixed costs are nonlinear. Variable costs are nonlinear. Selling prices are nonlinear.
Total costs are linear.
This Answer is Correct
This answer is correct. There are a number of underlying assumptions to breakeven analysis that need to be considered in the calculation and interpretation of breakeven computations. One of these assumptions is that the behavior of total cost and total revenue is linear, even though in actuality it may not be. It is important to note that under breakeven analysis, the linearity assumption is only applicable for a particular relevant range of activity and is not assumed for all levels of activity. Since the actual behavior of total cost and total revenue within a relevant range is usually close to being linear, this assumption will only slightly affect the precision and reliability in a given breakeven calculation.
As part of the strategic planning process, as an operating manager you are working on performance measures for your department. In a memo, describe the use of performance measures and provide examples for the different performance measures.
Performance measures are an important way to track successes and failures or strengths and weaknesses. Performance measures may be financial or nonfinancial metrics and aid in evaluating results with expected targets, thresholds, and benchmarks.
Financial performance measures, such as return on investment (ROI) or sales growth, provide useful metrics for the business and presents gaps between expected and actual financial results. Other examples of financial performance measures include residual income, economic value added (EVA), market value added (MVA), gross profit margin, stock price, and other financial ratios. It is useful to compare financial performance measures with prior periods, budgets, and also direct competitors.
Nonfinancial performance measures help the business in evaluating employees and business operations. Examples include, but are not limited to, defective product rate, amount of spoilage or scrap, customer satisfaction, employee learning, regulatory violations, quality control, delivery performance, market share, and employee training.
One of the most common strategic systems used to measure performance is the balanced scorecard. The balanced scorecard is a set of performance targets and results that shows the performance of the organization in meeting its shareholder objectives.
Collectively, financial and nonfinancial targets and measures help verify progress in our strategic objectives and employee accomplishments. They also set clear expectations upon which performance may be evaluated.
Thank you,
Future CPA
The operations manager of a company noticed that the number of customer returns steadily increased over the last six months. Upon further investigation, it was determined that many of the returns were caused by poor product quality. You have been engaged as a consultant to assist the company in addressing this problem.
In a memo to the operations manager, discuss causes and solutions to assist the company in addressing poor product quality.
In looking at product quality focus at your company, we see the opportunity to improve total quality management to ensure long-term success through customer satisfaction. As part of this, it is important to consider the total costs of quality and where opportunities exist at your company to reach a higher quality of conformance.
Quality of conformance refers to the degree to which a product meets its design specifications and customer expectations. Total quality management addresses both perspectives. When the overall quality of conformance is low, more of the total cost of quality is typically related to cost of failure. The cost of product returns falls under external failure costs. This is the most expensive of the costs of quality.
The likely cause of poor product quality is a breakdown in total quality management and not investing adequate resources in the right cost of quality components. By investing in a stronger total quality management system focused on the total cost of quality, especially invested in prevention costs, you should see an eventual reduction in your external failure costs.
Total quality management requires participation across the organization. It requires customer focus, empowering employees, continuous improvement, and management commitment. It also requires a focus on quality measures to be able to assess, strategically plan, and make sound decisions.
A company can measure the total cost of quality as the sum of prevention, appraisal, internal failure, and external failure costs. Prevention costs are quality costs designed to ensure the job is done right the first time, for example, quality engineering and training, supervision and support for prevention activities, quality data gathering, analysis, and reporting, and quality improvement projects. Appraisal costs include testing and inspecting to check for defective products, for example, supplies inspection, in-process goods inspection, and final product inspections as well as maintenance testing. Internal failure costs are costs incurred when product issues are discovered but the product has not yet reached the customer. Examples of internal failure costs include spoilage, rework (product, labor, and overhead), retesting and analysis of the cause, and related downtime. External failure costs are costs incurred due to defects when the product has reached the customer, for example, product returns, allowances, recalls, repairs, replacements, and lost sales due to reputation for products that do not meet the customer expectations.
Increasing prevention and appraisal costs is usually followed by decreasing failure costs and increase in quality of conformance. In general, the cost of prevention is less than both the cost of appraisal and the cost of failure. By investing in more prevention activities as well as appraisal activities, you too should see a decline in failure costs with a simultaneous improvement in total quality management.
Please let me know if you have any additional questions or would like to continue this discussion.
Thank you,
Future CPA
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