A company is deciding whether to purchase an automated machine to manufacture one of its products. Expected net cash flows from this decision depend on several factors, interactions among those factors, and the probabilities associated with different levels of those factors. The method that the company should use to evaluate the distribution of net cash flows from this decision and changes in net cash flows resulting from changes in levels of various factors is:

• A.Simulation and sensitivity analysis.
• B.Linear programming.
• C.Correlation analysis.
• D.Differential analysis.

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Using the information collected, the organization should focus on:

• A.The total number of personal computer complaints that occurred.
• B.The number of computer complaints associated with CD-ROM problems and new software usage.
• C.The number of computer complaints associated with the lack of user knowledge and hardware problems.
• D.The cost to alleviate all computer complaints.

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An internal auditor is using data analytics to locus on high-risk areas during an engagement. The auditor has obtained data and is working to eliminate redundancies in the dat a. Which of me following statements is true regarding this scenario?

• A.The auditor is analyzing the data m preparation for communicating the results
• B.The auditor is normalizing data in preparation for analyzing it
• C.The auditor is cleaning the data in preparation for determining which processes may tie involved
• D.The auditor is reviewing the data prior lo defining the question

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Preferred stock is less risky for investors than is common stock because:

• A.Common stock pays dividends as a stated percentage of face value.
• B.Preferred stock with no conversion feature has a higher dividend yield than does convertible preferred stock.
• C.Common stock has priority over preferred stock with regard to earnings and assets.
• D.Preferred dividends are usually cumulative.

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Heniser Pet Foods manufactures two products. X and Y. The unit contribution margins for Products X and Y are US $30 and US $50, respectively. Each product uses Materials A and B. Product X uses 6 pounds of Material A and 12 pounds of Material B. Product Y uses 12 pounds of Material A and 8 pounds of Material B. The company can purchase only 1,200 pounds of Material A and 1,760 pounds of Material B. The optimal mix of products to manufacture is:

• A.146 units of X and 0 units of Y.
• B.0 units of X and 100 units of Y.
• C.120 units of X and 40 units of Y.
• D.40 units of X and 120 units of Y.

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