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NEW QUESTION # 75
Which of the following is a likely result of outsourcing?
Answer: A
NEW QUESTION # 76
A company manufactures banana hooks for retail sale. The bill of materials for this item and the parts inventory for each material required are as follows:
An incoming order calls for delivery of 2.000 banana hooks in 2 weeks. The company has 200 finished banana hooks in current inventory. If no safety stocks are required for inventory, what are the company's net requirements for swag hooks and screws needed to fill this order?
Answer: C
Explanation:
The company needs 1,800 banana hooks (2,000 - 200) and therefore 1,800 swag hooks (1
* 1,800) and 3,600 wood screws (2 x 1,800). Given that 300 swag hooks and 400 wood screws are on hand, the company must obtain 1,500 swag hooks (1,800 - 300) and 3,200 wood screws (3,600 -400).
NEW QUESTION # 77
An organization uses a database management system (DBMS) as a repository for data. The DBMS, in turn, supports a number of end-user developed applications which were created using fourth-generation programming languages. Some of the applications update the database. Which of the following is the most important control related to the integrity of the data in the database?
Answer: D
NEW QUESTION # 78
Which of the following would not impair the objectivity of internal auditor?
Answer: C
NEW QUESTION # 79
A company began work on a long-term construction contract in Year 1. The contract price was US $3,000,000. Year-end information related to the contract is as follows
If the company uses the percentage-of-completion method of accounting for this contract, the profit to be recognized in Year 1 is:
Answer: C
Explanation:
When the outcome of a contract can be reasonably estimated, the percentage-ofcompletion method for estimated recognizes revenue based on the stage of completion of the contract. One typical method for estimating the stage of completion is the calculation of ratio of the contract costs incurred to date to the estimated total cost. The percentage-ofcompletion at year-end on the cost-to-cost basis is 35%US $7150,1509. The profit for Year 1 is the anticipated profit on the contract times the completion percentage. Thus, profit for Year 1 is US $350,000 [($3,000,000 - $2,000,000) x 35%].
NEW QUESTION # 80
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