PTD2 Flashcards
Which of the following is true of enterprise resource planning (ERP) systems?
I. The online analytical processing system (OLAP) provides data warehouse capabilities for the ERP system.
II. The ability of an ERP system to provide an integrated view of transactions in all parts of the system is a function of the online transaction processing (OLTP) system.
I only.
II only.
Both I and II.
Neither I nor II.
1 ONLY
This Answer is Correct
The online analytical processing system (OLAP) incorporates data warehouse and data mining capabilities within the ERP.
The online transaction processing system (OLTP) records the day-to-day operational transactions and enhances the visibility of these transactions throughout the system. It is primarily the OLAP and not the OLTP, that provides an integrated view of transactions in all parts of the system. The OLTP is primary concerned with collecting data (and not analyzing it) across the organization.
Haufinger buys one widget each day for use in his factory and pays for the widget using one bitcoin. On three recent days, the value of one bitcoin was:
Day 1: $2,200 US
Day 2: $2,400 US
Day 3: $2,500 US
According to the IRS, what is the cost of the widgets purchased for these three days for tax purposes?
1 bitcoin
$2,200
$2,367
$7,100
2367
Correct! The average cost is the correct cost, since bitcoins are treated as intangible assets
After changes to a source program have been made and verified, it moves to Atlanta. Development. The operator. Production.
PRODUCTION
This Answer is Correct
After changes and verification to those changes, source programs move into production.
An enterprise resource planning system is designed to
Allow nonexperts to make decisions about a particular problem.
Help with the decision-making process.
Integrate data from all aspects of an organization’s activities.
Present executives with the information needed to make strategic plans.
Integrate data from all aspects of an organization’s activities.
This Answer is Correct
It is a primary objective of an enterprise resource planning system to integrate data from all aspects of an organization’s activities into a centralized data repository. Hence, this is the best answer to the question.
Which of the following does investment’s beta measure? The investment’s systematic risk. The investment’s unsystematic risk. The investment’s default risk. The investment’s interest rate risk.
The investment’s systematic risk.
This Answer is Correct
This answer is correct. Beta is the covariance of the asset’s returns with the returns of the overall portfolio. Therefore, it measures the systematic risk of the investment.
The first steps in assessing privacy issues in an organization is to
Write notifications to stakeholders; inventory the accuracy of data.
Inventory data; determine relevant laws and regulations.
Draft opt-out provisions; obtain top management buy-in for these provisions
Secure existing data; determine disclosures allowed to third parties.
Inventory data; determine relevant laws and regulations.
This Answer is Correct
Correct! These are the first steps in assessing privacy in an organization. Understanding existing data and the laws that govern is the correct starting point.
Question 16
aq.erm.performance.003_2-18
Which of the following is the best risk statement in relation to executive management’s role in a major IT project undertaken by a large telecommunications company?
The risk that executive management disregards project communications and meetings
The risk that executive management disregards project communications and meetings, resulting in inadequate oversight, because of management’s inattention and lack of focus
The risk that executive management disregards project communications and meetings, which reduces project quality and the likelihood of successful integration with other systems
The risk that executive management disregards project communications and meetings, despite frequent efforts by the project management team to inform executive management of the importance of their involvement and engagement
The risk that executive management disregards project communications and meetings, which reduces project quality and the likelihood of successful integration with other systems
This Answer is Correct
Correct! A well-formed, precise risk statement should include a statement of the risk (which this one does) and a statement of the impact of the risk (which this one also does). In fact, this statement includes two outcomes or consequences of the risk, (1) lower project quality and (2) a lower likelihood of successful integration with other systems.
The production volume variance is due to
Inefficient or efficient use of direct labor hours.
Efficient or inefficient use of variable overhead.
Difference from the planned level of the base used for overhead allocation and the actual level achieved.
Excessive application of direct labor hours over the standard amounts for the output level actually achieved.
Difference from the planned level of the base used for overhead allocation and the actual level achieved.
This Answer is Correct
This answer is correct. The production volume variance is caused by the fact that production activity is different from planned.
Which of the following is not a characteristic of a purely competitive market?
Differentiated products.
No significant control over product price exerted by individual firms.
No barriers to entry for new firms.
A very large number of producing firms.
Differentiated products.
This answer is correct. Product differentiation is not a characteristic of a purely competitive market. It is a characteristic of monopolistically competitive markets and may characterize an oligopolistic market.
Are the following fixed-rate investments subject to interest rate risk during their life? Domestic Bonds International bonds U.S. Treasury Bills Yes Yes Yes Yes Yes No Yes No No Yes No Yes
YES YES YES
This Answer is Correct
All fixed-rate debt investments have an interest rate risk associated with them. Specifically, the risk is that the market rate of interest will go up, causing the value of outstanding debt (issued at a lower interest rate) to go down.
Which of the following is not a likely strategy for a firm in a purely competitive market? Lean manufacturing. Supply chain management. Process reengineering. Development of a brand name.
Development of a brand name.
In a purely competitive market firms compete based on price, and developing a brand name is a product differentiation strategy.
Which of the following components of internal control encompass policies and procedures that ensure that management’s directives are carried out? The control environment. Monitoring. Control activities. Information and communication.
Control activities.
This Answer is Correct
This answer is correct. Control activities encompass policies and procedures that ensure that management’s directives are carried out.
Charles Allen was granted options to buy 100 shares of Dean Company stock. The options expire in one year and have an exercise price of $60.00 per share. An analysis determines that the stock has an 80% probability of selling for $72.50 at the end of the one-year option period and a 20% probability of selling for $65.00 at the end of the year. Dean Company's cost of funds is 10%. Which one of the following is most likely the current value of the 100 stock options? $1,000 $1,100 $6,875 $7,100
1100
The stock has an 80% chance of selling at $72.50 at the end of the option period. That is $12.50 above the option price. The stock has a 20% chance of selling at $65.00 at the end of the option period. That is $5.00 above the option price. Therefore, the value of the option is:
[(.80 x $12.50) + (.20 x $ 5.00)]/1.10, or
[($10.00) + ($1.00)]/1.10, or
$11.00/1.10 = $10.00 x 100 shares = $1,000
