The units that failed inspection during the month would be classified by Ramseur as:

• A.Abnormal spoilage
• B.Normal scrap
• C.Normal reworked units
• D.Normal waste

Correct Answer: B

The units that failed inspection are classified as normal scrap because they have minimal value and can be sold without further reworking. The defective units are less than the 4% tolerance limit for normal spoilage. Scrap can be sold, disposed of or reused.

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Which of the following is an example of a physical control?

• A.Performing business continuity and disaster recovery planning
• B.Providing fire detection and suppression equipment
• C.Keeping an offsite backup of the organization's critical data
• D.Establishing a physical security policy and promoting it throughout the organization

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Which of the following best describes an objective for an audit of an environmental management system?

• A.To determine conformance with requirements and agreements.
• B.To evaluate executive management oversight.
• C.To promote environmental awareness.
• D.To assess whether an annual control review is necessary.

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Because of the large number of factors that could affect the demand for its new product, interactions among these factors, and the probabilities associated with different values of these factors, the marketing department would like to develop a computerized model for projecting demand for this product. By using a random-number procedure to generate values for the different factors, it will be able to estimate the distribution of demand for this new product. This method of estimating the distribution of demand for the new product is called:

• A.Monte Carlo simulation.
• B.Linear programming.
• C.Correlation analysis.
• D.Differential analysis.

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A control that a company can use to detect forged EDI messages is to:

• A.Acknowledge all messages initiated externally with confirming messages.
• B.Permit only authorized employees to have access to transmission facilities.
• C.Delay action on orders until a second order is received for the same goods.
• D.Write all incoming messages to a write-once/read-many device for archiving.

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