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NEW QUESTION 46
Which of the following controls would be most efficient to protect business data from corruption and errors?
- A. Controls to calculate batch totals to identify an error before approval.
- B. Controls to quickly identify malicious intrusion attempts.
- C. Controls to ensure data is unable to be accessed without authorization.
- D. Controls to encrypt the data so that corruption is likely ineffective.
Answer: A
NEW QUESTION 47
While auditing a marketing department, the internal auditor discovered that the product life cycle model was used to structure the marketing mix. Under such a philosophy, the opportunity for cost reductions would be greatest in which stage of the life cycle?
- A. Introduction stage.
- B. Growth stage.
- C. Decline stage.
- D. Maturity stage.
Answer: B
Explanation:
During the growth stage, the opportunity for cost reductions is at its maximum because production volume is increasing at a high rate. Thus, fixed costs are being spread over more units of production, and the benefits of the learning curve are being realized.
NEW QUESTION 48
General sales taxes tend to be regressive with respect to income because:
- A. A smaller portion of a lower income person's income is subject to the tax.
- B. The tax rate is higher for person with lower income.
- C. The tax claims an increasing amount of income as income rises.
- D. A larger portion of a lower income person's income is subject to the tax.
Answer: D
Explanation:
A sales tax is regressive with respect to income even though the rate is the same regardless of the buyer's income. The reason is that a greater percentage of a low-income individual's income is exposed to the tax. A higher-income individual should be able to save more and therefore shield a greater percentage of his/her income from the tax.
NEW QUESTION 49
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