Which of the following will allow a manufacturer with limited resources to maximize profits?

• A.The Delphi technique
• B.Exponential smoothing
• C.Regression analysis
• D.Linear programming

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Which of the following would an organization execute to effectively mitigate and manage risks created by a crisis or event?

• A.Preventive and alternative measures.
• B.Preventive and reactive measures.
• C.Alternative and reactive measures.
• D.Only preventive measures.

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The entity had sales for the period of:

• A.US $891,667
• B.US $1,100,000
• C.US $1,188,890
• D.US $1,466,667

Correct Answer: C

Gross profit equals 30% of sales. Thus, dividing gross profit by 30% yields sales. Gross profit equals profit before interest and tax PBIT plus administrative expense given as US $40,000) and depreciation US $500,000 fixed assets 10 years = US $50,000). Interest equals 10% of the long-term debt, or US $100,000 x 10%). Profit before tax equals US $166,667 [$100,000 profit -1.0 - 40% tax rate)]. Hence, PBIT must equal US $266,667$166,667 + $100,000), and gross profit must be US $356,667$266,667 PBIT+$40,000 administrative expense + $50,000 depreciation). Sales is therefore US $1,118,890$356,667 gross profit - 30% gross profit rate). At the end of the accounting period, an entity has the partially completed financial statements shown as follows.

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Which of the following control frameworks groups IT business assurance objectives into the five categories of availability, capability, functionality, protectibility, and accountability?

• A.COBIT
• B.COSO
• C.eSAC
• D.GTAG

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At December 31 of Year 1, an entity had a provision of US $40,000 for the "Estimated
Liability under Warranties" account. During Year 2, the entity sold 1,000 new units under warranties reliably estimated at US $100 per unit. The actual parts and labor warranty expenditures for Year 2 were US $90,000. Warranty expense for Year 2 should be

• A.US $40,000
• B.US $50,000
• C.US $90,000
• D.US $100,000

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