Which of the following is a disadvantage of selecting a commercial software package rather than developing an application internally?

• A.Incompatibility with client/server technology.
• B.Lack of flexibility.
• C.Inadequate technical support.
• D.Employee resistance to change.

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The economic order quantity is the size of the order that minimizes total inventory costs which include ordering and holding (carrying) costs. It can be calculated using the formula:

If:
Q = order size in units
D = annual demand in units
P = cost per purchase order
S = carrying cost per year for one unit of inventory
If the annual demand decreases by 36% the optimal order size will

• A.Decrease by 20%.
• B.Increase by 20%.
• C.Increase by 6%.
• D.Decrease by 6%.

Correct Answer: A

D decreases by 36%, that is, from 100% to 64%. Because .64 is the square of .8, the EOQ for .64D (Q1) equals 80% of the EOQ for D(Q).

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In a theory of constraints (TOC) analysis, the bottleneck operation (the constraint) corresponds to which part of the drum-buffer-rope model?

• A.Drum.
• B.Buffer.
• C.Rope.
• D.No part of TOC analysis corresponds to the drum-buffer-rope model.

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At year-end, the entity has a book value per share of:

• A.US $10.00
• B.US $15.00
• C.US $21.63
• D.US $25.00

Correct Answer: D

Book value per share based, on balance sheet amounts, measures the per share amount that would be received if the entry were liquidated. The ratio is calculated as ordinary equity divided by the number of outstanding shares.


The opening balance of ordinary shares was US $100,000. The opening balance of ordinary earning was US $82,500. The entity had 10,000 ordinary shares outstanding all year. No dividends were paid during the year.

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Which of the following is a project planning methodology that involves a complex series ot required simulations to provide information about schedule risk?

• A.Earned Value Management (EVM).
• B.Integrated Project Plan A
• C.Project Management Information System (PMIS)
• D.Monte Carlo Analysis

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