During an audit of the organization's annual financial statements, the internal auditor notes that the current cost of goods sold percentage is substantially higher than in prior years. Which of the following is the most likely explanation for this increase?

• A.Process to manufacture goods is more efficient.
• B.Labor productivity to produce goods is increasing.
• C.Cost of raw material inventory items is decreasing.
• D.Write-off of inventory is increasing.

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Which of the following is a likely result of outsourcing?

• A.Decreased focus on costs
• B.Decreased sensitivity to government regulation
• C.Increased dependence on suppliers.
• D.Increased importance of market strategy.

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Which of the following most accurately describes the purpose of application authentication controls?

• A.To ensure that business applications are protected from unauthorized logical access.
• B.To prevent or detect errors in data processed using business applications.
• C.To ensure the validity, accuracy, and completeness of outputs from business applications.
• D.To ensure that data input into business applications is valid, complete, and accurate.

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A division uses a regression in which monthly advertising expenditures are used to predict monthly product sales (both in millions of US dollars). The results show a regression coefficient for the independent variable equal to 0.8. This coefficient value indicates that:

• A.The average monthly advertising expenditure in the sample is US $800,000.
• B.When monthly advertising is at its average level, product sales will be US $800,000.
• C.On average, every additional dollar of advertising results in US $.80 of additional sales.
• D.Advertising is not a good predictor of sales because the coefficient is so small.

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A multinational organization involved in online business has planned to set up a help desk service. Which of the following best describes the role performed by the help desk?

• A.Maintaining and assuring network security.
• B.Backing up and maintaining archived data.
• C.Responding to customer inquiries.
• D.Monitoring access to the online database.

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