The problem just described is best approached by use of which quantitative method?

• A.Integrated autoregressive-moving average (ARIMA) modeling.
• B.Exponential smoothing, multiple parameters.
• C.Queuing theory.
• D.Linear programming.

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Which of the following application software features is the least effective control to protect passwords?

• A.Encryption of passwords prior to their transmission or storage.
• B.Forced change of passwords after a designated number of days.
• C.Automatic logoff of inactive users after a specified time period of inactivity.
• D.Suspension of user IDs after a user's repeated attempts to sign on with an invalid password.

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The techniques used in analyzing the problem is best described as:

• A.Simultaneously theory.
• B.Integrated auto aggressive-moving average ARIMA) modeling.
• C.Linear programming
• D.Differential calculus.

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An internal auditor discovered that several unauthorized modifications were made to the production version of an organization's accounting application. Which of the following best describes this deficiency?

• A.Application controls weakness.
• B.Change controls weakness.
• C.Authorization controls weakness.
• D.Production controls weakness.

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The company has learned that a new direct material is available that will increase the quality of its product. The new material will increase the direct materials costs by US $3 per unit. The company will increase the selling price of the product to US $50 per unit and increase its marketing costs by US $1.575.000 to advertise the higher-quality product. The number of units the company has to sell to earn a 1 O% before-tax return on sales is:

• A.337.500 units
• B.346.875 units
• C.425.000 units
• D.478.125 units

Correct Answer: D

Pretax profit 10% of dollar sales) equals dollar sales unit sales US $50), minus total fixed costs increased by US $1,575,000 of marketing costs), minus total variable costs increased by US $3 per unit). Unit sales S) therefore equal 478.125 units.

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