S-BEC DS Good MCQs Session 2 (5)

The effective interest rate for offering customers a trade discount is computed how?

[365/(total credit period - discount period)] - [Percentage of discount/ (100% - % of discount)])

Linear programming is what?

a model for the allocation of scarce resources.

Cost-volume-profit analysis is what?

a model used to aid decision making relating to product lines, pricing of products, marketing strategy, and utilization of production facilities.

Exponential smoothing is what?

a statistical method that is useful as a sales forecasting technique

Dominant control by only a few people can directly affect the control environment why?

because it is the only item listed above over which management has significant influence.

Functions such as what could be considered fraud for a programmer?

changing systems software, finding and correcting data-entry errors, and maintaining programming code and documentation are segregated to prevent fraud.

To maintain effective segregation of duties within the information technology function an application programmer should have which of the following responsibilities?

code approved changes to payroll program

Which of the following amounts would most likely be subject to the control of the profit center manager?

contribution margin

Which of the following decision-making models equates the initial investment with the present value of the future cash inflows?

internal rate of return

The opportunity cost of making a component part in a factory with no excess capacity is what?

net benefit given up for the best alternative use of the capacity

For calculating cost of preferred stock which amount should you use?

per share basis 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?

reasonableness

Reciprocal processing agreements are often used for which types of systems?

small systems, large batch operations, and small batch operations.

Multiprogramming is what?

the appearance of simultaneous execution of two programs as a single processing unit switches back and forth between the programs

The capital budgeting model that is generally considered the best model for long-range decision making is which model and why?

the discounted cash flow model because the time value of money (present and future values) is considered.

Multiprocessing involves what?

the simultaneous execution of two or more tasks, usually by using two or more processing units that are part of the same system (with a single central memory).

Electronic data interchange is used to electronically transfer information between and within organization computers. However it comes at a cost. The service is standardized so what is needed?

translation is needed to convert data from the usual format to that acceptable to the EDI system.

Average inventory level =

(Economic order quantity /2) + safety stock amount

Why would the tone at the top NOT be effective in helping adhere to fiscal goals?

Because Establishing an effective tone at the top is not related to adherence to fiscal budgets and goals.

Examples of internal checks are what?

Limit check, which identifies if data have a value higher or lower than a predetermined amount/Identification, which determines if the data is valid/Sequence check, which checks sequencing/Error log, which is simply an up-to-date log of all identified errors/Transaction log, which provides the basic audit trail/Arithmetic proof, which computes the calculation in order to validate the result