The bullwhip, or whiplash, effect on inventories begins when retailers face uncertain demand from consumers caused by randomness in buying habits. It can be avoided by:

• A.The need to purchase or manufacture goods in cost-efficient batches.
• B.Changes in price that may encourage purchases in anticipation of future increases.
• C.Shortages that may lead to rationing by suppliers or manufacturers and hoarding by manufacturers or retailers.
• D.Sharing of information and coordination among the organizations in the supply chain.

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An organization's technician was granted a role that enables him to prioritize projects throughout the organization. Which type of authority will the technician most likely be exercising?

• A.Referent authority.
• B.Coercive authority.
• C.Expert authority.
• D.Legitimate authority

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An internationally recognized brand name is an entrance barrier to new competitors because new competitors would:

• A.Face higher learning costs, which would increase fixed costs.
• B.Have to initiate a price war in order to enter the industry.
• C.Face increased production costs.
• D.Face increased marketing costs.

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Which of the following techniques would best detect an inventory fraud scheme?

• A.Analyze inventory invoice amounts and compare with approved contract amounts.
• B.Analyze stratification of inventory adjustments by warehouse location.
• C.Analyze Invoice payments just under individual authorization limits.
• D.Analyze differences discovered during duplicate payment testing

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Which of me following statements is true regarding the reporting of tangible and intangible assets?

• A.For plant assets cost includes the purchase price and the cost of design and construction
• B.The organization must expense any cost incurred in developing a plant asset
• C.For intangible assets cost includes the purchase price and development costs
• D.Due to their indefinite nature intangible assets are not subject to amortization

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