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| Section | Objectives |
|---|---|
| Information Security and Business Continuity | - Information security management principles - Data protection and privacy considerations - Business continuity and disaster recovery |
| Information Technology and Business Systems | - Information systems and data governance - IT controls and cybersecurity fundamentals - System development lifecycle concepts |
| Business Acumen and Global Business Environment | - Business strategies and objectives alignment - Global business environment and market influences - Organizational structure and business processes |
| Risk Management and Regulatory Environment | - Internal controls and governance concepts - Enterprise risk management (ERM) principles - Compliance and regulatory frameworks |
| Financial Management | - Financial statements and reporting basics - Budgeting and cost control - Managerial accounting concepts |
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NEW QUESTION # 48
Heniser Pet Foods manufactures two products, X and Y.
The unit contribution margins for Products X and Y are US $30 and US $50, respectively. Each product uses Materials A and B. Product X uses 6 pounds of Material A and 12 pounds of Material B. Product Y uses 12 pounds of Material A and 8 pounds of Material B. The company can purchase only 1,200 pounds of Material A and 1,760 pounds of Material B. The optimal mix of products to manufacture is:
Answer: B
Explanation:
Linear programming is a technique used to maximize a contribution margin function or to minimize a cost function, subject to constraints such as scarce resources or minimum/maximum levels of production. Thus, linear programming is often used for planning resource allocations. In this problem, the equation to be maximized, called the objective function, is: US $30X + $50Y. This equation is to be maximized subject to the constraints on materials. The two constraint functions are:
Material A: 6X+12Y< 1,200 Material B 12X + 8Y< 1,760
One way to solve this problem is to graph the constraint lines and determine the feasible area. The optimal production level is at an extreme point within the feasible area. The graph shows that a production level of 120 units of X and 40 units of Y is a feasible production level that maximizes the contribution margin.
NEW QUESTION # 49
Which of the following cybersecurity-related activities is most likely to be performed by the second line of defense?
Answer: C
NEW QUESTION # 50
Which of the following forms of compensation best indicates that an organization's cost-saving objectives have been targeted?
Answer: B
Explanation:
Comprehensive and Detailed In-Depth Explanation:
Gain sharing is a compensation program where employees receive bonuses tied directly to the company's cost- saving measures and productivity improvements. This approach aligns employees' interests with organizational goals by rewarding them for identifying and implementing efficiencies that reduce costs.
Unlike profit sharing, which is based on overall profitability, gain sharing focuses specifically on performance improvements that lead to cost savings. Commissions are typically related to sales performance, and pensions are long-term retirement benefits not directly linked to immediate cost-saving efforts. Therefore, gain sharing is the most indicative of targeting cost-saving objectives.
NEW QUESTION # 51
An entity uses the following formula in determining its optimal level of cash.
This formula is a modification of the economic order quantity EOQ formula used for inventory management. Assume that the set of selling marketable securities is US $10 per transaction and the interest rate on marketable securities is 6% per year. The entity estimates that it will make cash payments of US $12.000 over a one-month period. What is the average cash balance rounded to the nearest dollar)?
Answer: D
Explanation:
The BOO for inventory is a function of ordering cost per order, inventory demand, and carrying cost. In the cash model, the fixed cost per sale of securities is equivalent to the ordering cost, the demand for cash is similar to the demand for inventory, and the interest rate is effectively the cost of carrying a dollar of cash for the period. Substituting in the formula yields an optimal cash balance of about US $6.928. Thus, the average cash balance is US $3,464 $6,928 - 2).
NEW QUESTION # 52
According to IIA guidance on IT, which of the following plans would pair the identification of critical business processes with recovery time objectives?
Answer: A
Explanation:
Reference: IIA Business Knowledge for Internal Auditing, Business Continuity Planning section.
NEW QUESTION # 53
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