According to the ISO 14001 standard, which of the following is not included in the requirements for a quality management system?

• A.The entity must have processes for inspections, testing, measurement, analysis, and improvement.
• B.The quality management system must be documented in the articles of incorporation, quality manual, procedures, work instructions, and records.
• C.Key processes across the entity which impact quality must be identified and included.
• D.Management must review the quality policy, analyze data about quality management system performance, and assess opportunities for improvement and the need for change.

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Derivatives that are not hedging instruments are always classified in which category of financial instruments?

• A.Financial assets or liabilities held for trading
• B.Held-to-maturity investments.
• C.Loans and receivables.
• D.Available-for-sale financial assets.

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Each stock out of a product sold by Company I-: costs US $1,750 per occurrence. The carrying cost per unit of inventory is US $5 per year, and the company orders 1,500 units of product 24 times a year at a cost of US $100 per order. The probability of a stock out at various levels of safety stock is.

What is the optimal safety stock level for the company?

• A.0 units.
• B.100 units.
• C.300 units.
• D.400 units.

Correct Answer: D

The total expected cost of safety stock equals the sum of the expected annual stock out cost and the expected annual carrying cost. Annual expected stock out cost equals the cost per occurrence US $1,750), times the probability of a stock out per cycle, times the number of cycles 24). Annual expected carrying cost of a safety stock equals the unit carrying cost US $5) times the number of units. Hence, a safety stock of 400 units has the lowest total expected cast.

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Which of the following price adjustment strategies encourages prompt payment?

• A.Cash discounts.
• B.Quantity discounts.
• C.Functional discounts.
• D.Seasonal discounts.

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Which of the following best describes the purpose of disaster recovery planning?

• A.To reconstitute systems efficiently following a disruptive event.
• B.To establish a protected area of network that is accessible to the public after a disaster
• C.To describe how data should move from one system to another system in case of an emergency.
• D.To define rules on how devices within the system should communicate after a disaster.

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