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C_TADM_22 Questions and Answers
Question # 1
What is the best type of accounting system control to help prevent improper manipulation of data and toensure the continued, satisfactory use of the hardware and software?
A.
Processing controls such as limiting access
B.
Output controls such as a maximum check
C.
input controls such as a limit check
D.
Throughput controls such as a hash total
View Answer
Question # 2
Collins Corporation manufactures its products in a highly automated, just-in-time environment and uses a standard cost system. The variance that would cause the least concern would be a
A.
6% unfavorable fixed overhead volume variance caused by work stoppages because of missing parts
B.
9% unfavorable material price variance caused by changing to a supplier that would support the company’s just-in-time needs.
C.
30% unfavorable direct labor efficiency variance caused by idle time while waiting for goods to be received from a previous manufacturing department
D.
12% unfavorable variable overhead spending variance caused by keeping equipment running during times when there is no production activity
View Answer
Question # 3
In trying to predict the returns on the stock market, a novice investor collected data on the sightings ofsperm whales off the eastern coast of North America and the performance of the Dow Jones Industrial Average (the Dow) A regression of the two variables resulted in a correlation coefficient of -0.90 or a coefficient of determination (r2) of 81%. The sightings of whales seemed to be negatively correlated with the performance of the Dow. The novice investor should
A.
conclude that there is a cause-and-effect relationship between the two variables
B.
track the sighting of sperm whales and buy the Dow when sightings are low: conclude that sperm whale sightings are a strong indicator of poor performance of the Dow
C.
conclude that the poor performance of the Dow leads to high sightings of sperm whales
D.
conclude that this is an example of spurious correlation
View Answer
Question # 4
A plastics manufacturing company is analyzing business units using the BCG Growth-Share Matrix Business Unit A is a market leader with high market share in the plastic container market Unit A’s growth in the past three years has been limited due to high regulation and decreasing customer demand Customer satisfaction tor the unit is high Business Unit B is a relatively new business unit which entered the market two years ago with a new, innovative plastic organizer Unit B holds just 5% of the market share but growth has been high for this new product line Throughput time for this unit is lower than the company average with a high number of reworks each month. Which one of the following correctly identifies the BCG Growth-Share matrix for Business Unit A and Business Unit B. respectively?
A.
Cash cow, question mark
B.
Star dog
C.
Question mark, question mark-
D.
Star cash cow
View Answer
Question # 5
The manager in charge of the disaster recovery plan for a company has ensured that there is off-site storage of key data programs, operating systems and documentation. Which one of the following is the best next step to be prepared for a disaster?
A.
She should enter into reciprocal agreements with alternative ”hot” sites.
B.
She should make sure that everyone Knows the location of offsite data storage.
C.
She should create a planning document including a list of critical applications.
D.
She should ensure that the “cold” sites are fully equipped and ready.
