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NEW QUESTION 49
The board of directors wants to implement an incentive program for senior management that is specifically tied to the long-term health of the organization.
Which of the following methods of compensation would be best to achieve this goal?

  • A. Gain-sharing bonuses.
  • B. Stock options.
  • C. Allowances.
  • D. Commissions.

Answer: A

 

NEW QUESTION 50
An organization produces two products, X and Y.
The materials used for the production of both products are limited to 500 kilograms (kg) per month.
All other resources are unlimited and their costs are fixed. Individual product details are as follows:
Product X
Product Y
Selling price per unit
$10
$13
Materials per unit (at $1/kg)
2 kg
6 kg
Monthly demand
100 units
120 units
In order to maximize profit, how much of product Y should the organization produce each month?

  • A. 60 units.
  • B. 120 units.
  • C. 50 units.
  • D. 100 units.

Answer: C

 

NEW QUESTION 51
While conducting audit procedures at the organization’s data center, an internal auditor noticed the following:
Backup media was located on data center shelves.
Backup media was organized by date.
Backup schedule was one week in duration.
The system administrator was able to present restore logs.
Which of the following is reasonable for the internal auditor to conclude?

  • A. Backup procedures are adequate and appropriate according to best practices.
  • B. Backup media is not properly stored, as the storage facility should be off-site.
  • C. Backup media is not properly indexed, as backup media should be indexed by system, not date.
  • D. Backup schedule is not sufficient, as full backup should be conducted daily.

Answer: D

 

NEW QUESTION 52
An organization decided to install a motion detection system in its warehouse to protect against after-hours theft. According to the COSO enterprise risk management framework, which of the following best describes this risk management strategy?

  • A. Sharing.
  • B. Elimination.
  • C. Reduction.
  • D. Avoidance.

Answer: C

 

NEW QUESTION 53
An internationally recognized brand name is an entrance barrier to new competitors because new competitors would:

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

Answer: A

 

NEW QUESTION 54
……

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