Multiple Choice

 

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Question 1
The information systems projects of both the U.S. Navy and FedEx were __________ in nature.
A. tactical
B. strategic
C. operational
D. large-scale

Question 2
A global information systems strategy is characterized by __________ systems.
A. centralized
B. decentralized
C. distributed
D. homogeneous

Question 3
The business competency area for IS professionals:
A. is more strategic than technical.
B. sets them apart from others who have only technical skills.
C. is the easiest to outsource.
D. None of the above

Question 4
Information systems are combinations of __________ that people build and use to collect, create, and distribute useful data, typically in organizational settings.
A. hardware
B. software
C. telecommunications networks
D. All of the above

Question 5
Which type of information system enables customers to buy goods and services from a firm’s Web site?
A. Customer Relation Management System
B. Electronic Commerce System
C. Office Automation System
D. Transaction Processing System

Question 6
Which of the following is considered to be one of the more traditional categories that are used to describe information systems?
A. Transaction processing systems
B. Management information systems
C. Decision support systems
D. All of the above

Question 7
Which of the following is NOT true about knowledge?
A. Knowledge is accumulated wisdom.
B. Knowledge is needed to understand relationships between different pieces of information.
C. Knowledge is used to organize or manipulate data.
D. All of the above are true.

Question 8
Knowledge is a body of governing procedures. Which of the following American outsourcing destination countries has the highest English proficiency?
A. Argentina
B. Brazil
C.Costa Rica
D.Mexico

Question 9
Which of the flowing is NOT a product marketed by Apple?
A. iPod
B. iTunes
C. iDrive
D.Newton

Question 10
Which executive-level person is responsible for overseeing and managing the organization’s information systems?
A. Chief Knowledge Officer
B. Chief Technology Officer
C. Chief Information Officer
D. Chief Operations Officer

Question 11
Which IS manager is responsible for coordinating and managing the entire voice and data network?
A. Operations manager
B. Database administrator
C. Telecommunications manager
D. Network manager

Question 12
Which of the following events interrupted Globalization 2.0?
A. The Great Depression
B. World War I
C. World War II
D. All of the above

Question 13
__________ is a cultural characteristic related to the risk-taking nature of a culture.
A. Risk aversion
B. Uncertainty avoidance
C. Fear of future consequences
D. Risk seeking

Question 14
The first mainstream Web browser was called:
A. Netscape.
B. Opera.
C. Firefox.
D. Internet Explorer.

Question 15
Which of the following is a weakness of the multidomestic business strategy?
A. Differing product offerings limit economies of scale
B. Inability to react to local market conditions
C. Difficult to manage
D. Personnel overhead

Question 16
__________ enables you to apply concepts from one domain to a new situation or problem.
A. Information
B. Wisdom
C. Data
D. Knowledge

Question 17
De facto standards contributing to Globalization 3.0 include all of the following EXCEPT:
A. Microsoft Word.
B. Adobe Acrobat.
C. PayPal.
D. eBay.

Question 18
Which of the following is NOT considered a geoeconomic challenge of operating in a digital world?
A. Demographic
B. Expertise
C. Time zone differences
D. Internet access

Question 19
A __________ information systems strategy is characterized by local databases.
A. global
B. transnational
C. multinational
D. hybrid

Question 20
The EU data protection directive limits:
A. Internet freedom.
B. personal rights to access data.
C. transborder data flows.
D. electronic commerce.

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Multiple Choice
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1.) Boxes-2-Go has two divisions, large and small, that share the common costs of the company’s communications network. The annual common costs are $4,500,000. You have been provided with the following information for the upcoming year:
What is the allocation rate for the upcoming year assuming Boxes-2-Go uses the single-rate method and allocates common costs based on the time on the network?
$10.00
$7.14
$8.00
$10.98

2.) In an activity-based cost management (ABM) system, facility-level costs are those that are incurred to: 
sustain the company’s marketing program. 
maintain the plant’s production capacity. 
cope with a change in the engineering plans for a product. 
support the research and development process. 

3.) Zela Company is preparing its annual profit plan. As part of its analysis of the profitability of individual products, the controller estimates the amount of overhead that should be allocated to the individual product lines from the information provided below. (CMA based)
Budgeted material handling costs: $50,000 
Under a traditional costing system that allocates overhead on the basis of direct labor hours, the materials handling costs allocated to one unit of specialty windows would be
$500
$5,000
$1,500
$2,000

4.) Activity analysis is one of the first stages in implementing an activity-based costing system. Which of the following steps in “activity analysis” is usually performed first?
Identify the process objectives that are defined by what the customer wants from the process.
Classify all activities as value added or nonvalue added.
Improve the efficiency of all activities and develop plans to eliminate any nonvalue-added activities.
Record, from start to finish, the activities used to complete the product or service.

5.) When managers are held responsible for costs and the input-output relationship is well specified, a(n) ________________________ is established.
standard cost center
discretionary cost center
asset center
revenue center

6.) Net realizable value at the split-off point is used to allocate
b
a
c
d

7.) Because this allocation method recognizes that service departments often provide each other with inter-departmental service, it is theoretically considered to be the most accurate method for allocating service department costs to production departments. This method is: (CMA adapted)
direct method.
linear method.
step-down method.
reciprocal method.
variable method.

8.) Assets invested in a responsibility center are included in a performance report of
d
b
c
a

9.) Rogers Company is preparing its annual profit plan. As part of its analysis of the cost of its purchasing activity, management estimates that the $48,000 for purchasing support should be assigned t
o the individual vendors from the information given as follows:

What is the amount of the purchasing costs that should be allocated to Vendor A assuming Rogers uses purchases orders to compute activity-based costs?
$38,400
$9,600
$32,000
$16,000

10.) Which of the following items would be classified as a volume-level cost in an activity-based cost management (ABM) system?
Indirect materials
Depreciation on factory building
Research and development
Production supervisor’s salary

11.) Smelly Perfume Company manufactures and distributes several different products. They currently use a plantwide allocation method for allocating overhead at a rate of $7 per direct labor hour. Cindy is the department manager of Department C which produces Products J and P. Department C has $16,200 in traceable overhead. Diane is the department manager of Department D which manufactures Product X. Department D has $11,100 in traceable overhead. The product costs (per case of 24 bottles) and other information are as follows:
If Smelly changes its allocation basis to machine hours, what is the total product cost per case for Product X? (Do not round your intermediate calculations. Round your final answer to two decimal places.) 
$75.17 
$80.48 
$79.50 
$74.00 

12.) Joint products and byproducts are produced simultaneously by a single process or series of processes and
byproducts are salable at the split-off point, but joint products are not.
joint products are salable at the split-off point, but byproducts are not.
the revenue from byproducts may be recognized at the time of production.
all byproducts must be allocated some portion of joint costs

13.) Folly Beach Industries decides to price delivery service according to the results of a recent activity-based costing (ABC) study. The study indicates Folly Beach should charge $16 per order, 1% of the order’s value for general delivery costs, $2.50 per item, and $45 per delivery.
A year later, Folly Beach collected the following information for three of its customers:
What are the total delivery costs charged to Customer B during the year?
$13,490
$10,800
$11,378
$10,578

14.) The RAH Manufacturing Company has two service departments: Maintenance and Accounting. The Maintenance Department’s costs of $300,000 are allocated on the basis of machine hours. The Accounting Department’s costs of $120,000 are allocated on the basis of the number of employees within a specific department. The direct departmental costs for A and B are $300,000 and $500,000, respectively.
What is the Accounting Department’s cost allocated to Department B using the direct method? (Do not round intermediate calculations. Round final answers to the nearest dollar amount.) 
$80,000 
$10,000 
$40,000 
$20,000 

15.) Which of the following departments is not a service department in a typical manufacturing company?
Human resources
Accounting
Assembly
Information processing

16.) The Moody Company produced three joint products at a joint cost of $100,000. Two of these products were processed further. Production and sales were:
Assume Q is a by-product and Moody uses the cost reduction method of accounting for by-product cost. If estimated net realizable value is used, how much of the joint costs would be allocated to product R? (Do not round intermediate calculations.) 
$38,889 
$43,750 
$50,000 
$62,500 

17.) The number of services provided by an accounting firm would be classified as a(n)
volume-related activity.
facility-related activity.
product-related activity.
batch-related activity

18.) Which of the following measures is used by activity-based costing (ABC) systems as an allocation base for allocating overhead costs to the units produced?
Volume-related activities
Batch-related activities
Product-related activities
Facility-related activities
All of these are used by ABC systems

19.) RS Company manufactures and distributes two products, R and S. Overhead costs are currently allocated using the number of units produced as the allocation base. The controller has recommended changing to an activity-based costing (ABC) system. She has collected the following information:
What is the total overhead allocated to Product S using the current system?
$100,000
$160,000
$113,600
$146,400

20.) The amount of resources used in an activity-based costing (ABC) system for a specific activity is computed by multiplying the:
cost driver rate and the actual cost driver volume.
cost driver rate and the planned cost driver volume.
overhead rate and the planned cost driver volume.
overhead rate and the actual cost driver volume

21.) An operating unit of an organization is called a profit center if it is responsible
only for costs.
for investments in assets.
for costs and revenues.
only for revenues.

22.) Fenway Telcom has three divisions, commercial, retail and consumer, that share the common costs of the company’s computer server network. The annual common costs are $2,400,000. You have been provided with the following information for the upcoming year:
Fenway Telcom uses the single rate method and allocates common costs based on the number of connections. What is the total computer server network cost allocated to the Commercial Division?
$514,286
$1,200,000
$600,000
$480,000

23.) Beta Company is preparing its annual profit plan. As part of its analysis of the profitability of its customers, management estimates that the $12,000 for sales support should be assigned to the individual customers from the information given as follows:
What is the amount of the sales support costs that should be allocated to Customer B assuming Beta uses purchases orders to compute activity-based costs?
$2,400
$8,000
$4,000
$9,600

24.) Decentralization refers to the delegation of decision-making authority to
board of directors.
subordinates.
superiors.
top management.

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Multiple Choice
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1) One reason for international investment is to reduce
A. portfolio risk 
B. price-earnings (P/E) ratios 
C. advantages in a foreign country 
D. exchange rate risk.

2) The firm should accept independent projects if
A. the payback is less than the IRR 
B. the profitability index is greater than 1.0 
C
. the IRR is positive 

D. the NPV is greater than the discounted payback

3) Lever Brothers has a debt ratio (debt to assets) of 40%. Management is wondering if its current capital structure is too conservative. Lever Brothers’ present EBIT is $3 million, and profits available to common shareholders are $1,560,000, with 342,857 shares of common stock outstanding. If the firm were to instead have a debt ratio of 60%, additional interest expense would cause profits available to stockholders to decline to $1,440,000, but only 228,571 common shares would be outstanding. What is the difference in EPS at a debt ratio of 60% versus 40%?
A. $1.75 
B. $2.00 
C. $3.25 
D. $4.50

4) The most expensive source of capital is
A. preferred stock 
B. new common stock 
C. debt 
D. retained earnings

5) The cost associated with each additional dollar of financing for investment projects is
A. the incremental return 
B. the marginal cost of capital 
C. risk-free rate 
D. beta

6) The XYZ Company is planning a $50 million expansion. The expansion is to be financed by selling $20 million in new debt and $30 million in new common stock. The before-tax required rate of return on debt is 9%, and the required rate of return on equity is 14%. If the company is in the 40% tax bracket, what is the marginal cost of capital? 
A. 14.0% 
B. 9.0% 
C. 10.6% 
D. 11.5%

23) Shawhan Supply plans to maintain its optimal capital structure of 30% debt, 20% preferred stock, and 50% common stock far into the future. The required return on each component is: debt–10%; preferred stock–11%; and common stock–18%. Assuming a 40% marginal tax rate, what after-tax rate of return must Shawhan Supply earn on its investments if the value of the firm is to remain unchanged? 
A. 18.0% 
B. 13.0% 
C. 10.0% 
D. 14.2%

7) Which of the following is considered to be a deficiency of the IRR?
A. It fails to properly rank capital projects. 
B. It could produce more than one rate of return. 
C. It fails to utilize the time value of money. 
D. It is not useful in accounting for risk in capital budgeting.

8) Zybeck Corp. projects operating income of $4 million next year. The firm’s income tax rate is 40%. Zybeck presently has 750,000 shares of common stock which have a market value of $10 per share, no preferred stock, and no debt. The firm is considering two alternatives to finance a new product: (a) the issuance of $6 million of 10% bonds, or (b) the issuance of 60,000 new shares of common stock. If Zybeck issues common stock this year, what will be the projected EPS next year?
A. $4.94 
B. $2.96 
C. $5.33 
D. $3.20

9) _________ risk is generally considered only a paper gain or loss.
A. Transaction 
B. Translation 
C. Economic 
D. Financial

10) Capital markets in foreign countries
A. offer lower returns than those obtainable in the domestic capital markets 
B. provide international diversification 
C. in general are becoming less integrated due to the widespread availability of interest rate and currency swaps 
D. have been getting smaller in the past decade

11) Buying and selling in more than one market to make a riskless profit is called
A. profit maximization 
B. arbitrage 
C. international trading 
D. an efficient market

12) What keeps foreign exchange quotes in two different countries in line with each other?
A. Cross rates 
B. Forward rates 
C. Arbitrage 
D. Spot rates

13) For the NPV criteria, a project is acceptable if the NPV is __________, while for the profitability index, a project is acceptable if the profitability index is __________.
A. less than zero, greater than the required return 
B. greater than zero, greater than one 
C. greater than one, greater than zero 
D. greater than zero, less than on

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Lead Analytical Chemist
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Imagine yourself as the Lead Analytical Chemist at Kaplan Industries. Your first big assignment is to investigate the strength of several commercial antacids for the Food and Drug Administration (FDA). They have sent five antacids to be tested with a back-titration that works as follows: 
First, each antacid tablet is mixed with 40 mL of 0.1 M HCl-this acidic solution is the same stuff that is in stomach acid, and one antacid pill isn’t anywhere near enough to neutralize all 40 mL of the acid.
So, to see how much extra help each antacid pill needs to neutralize 40 mL of 0.1 M HCL, you add 0.05 M NaOH drop-by-drop to back-titrate the solution until the pH is neutral.
What this means is that, the stronger the antacid tablet, the less NaOH it will take to help bring the acid to neutral. (In other words, the stronger antacid tablets counteract more of the original HCl, leaving the solution closer to neutral before the NaOH is added.)
Here are your results:

Maalox
Tums
Mylanta
CVS brand
Rennies
Mass of one dose
antacid
20.0 g
21.0 g
18.0 g
18.3 g
17.5 g
mL NaOH used in back-titration
24.1 mL
22.4 mL
20.0 mL
19.9 mL
24.4 mL
               
1. Which is the strongest antacid, on a single-dose basis? Which is the weakest? Explain and show your calculations.
2. Which are the strongest and weakest, on a by-weight (mass) basis?

3) When people do back titrations, they usually watch the solution for a color change when the solution becomes neutral. What might you have used in the above experiment to get this color change to happen in the solution? At what pH would the solution have been neutral?

4) If you had walked into the lab, only to discover that you only had 0.1 M sulfuric acid available to run your tests, how might this have affected your calculations? Why?
5) If most of the antacids you tested, the active ingredient is Aluminum Hydroxide. Here is an unbalanced reaction that shows how this chemical neutralizes HCl (the main ingredient in stomach acid). Please provide a balanced version of this equation:

6) The FDA requires that all of its reports be super-brief-short enough so that they can be sent via text message to all of its lab sites across the country.. As you probably know, the word limit for text messages is very small, so your goal here is to describe precisely what you did to test the antacids in fewer than 150 words. In this brief report, you should provide the FDA the major findings from your tests and let them know generally how you p
erformed your tests.

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Multiple Choice
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1) A human resources department may provide all of the following functions EXCEPT:
a. placing recruitment advertisements.
b. employee benefits administration.
c. payroll processing.
d. providing legal advice to employees.
e. delivering training programs.

2) The strategic management of employees:
a. centers around the constant monitoring of regulations and legislative issues.
b. helps an organization achieve competitive advantage.
c. must involve aligning HR activities in order for employees to perform well.
d. focuses on workforce planning and identifying labor force trends.
e. Both b and c.

3) When designing a job, the manager should ask several questions related to which of the
following items?
a. Time
b. Equipment
c. Tasks
d. Technology
e. Training

4) The main purpose of recruitment and selection is to:
a. fill all vacant positions within an organization in a timely fashion.
b. ensure that new hires are offered the most competitive benefits and compensation
package.
c. hire employees who have the knowledge, skills and abilities to help the company succeed.
d. find employees who can be trained to meet the needs of the organization.
e. use “one best way” to find and hire employees.

5) An example of an organization who compensates employees based on performance would most
likely be:
a. providing an employee with a holiday bonus each year in December.
b. paying an employee based on the average number of parts they inspect every four hours.
c. providing an employee with a flat hourly rate for each hour of work they perform.
d. providing a sales employee with a company car due to the volume of sales calls they make.
e. paying an employee an annual salary based on the management role they hold.

6) The majority of your employees are females under the age of 45. Which benefits will most
likely attract and retain them?
a. Workers compensation and personal leave
b. Long term disability and life insurance
c. Wellness programs and free parking
d. Health insurance and vacation time
e. Social Security and a pension plan

7) A company whose strategy focuses on providing excellent customer service would most likely
have the following practices in place EXCEPT:
a. selection tools which assess how an employee may behave towards a difficult customer.
b. job descriptions which emphasize the employee’s role in designing quality products.
c. a compensation program which includes rewards for receiving positive customer
comments.
d. a detailed customer service training program for all employees.
e. a no hassle policy regarding product returns and exchanges.

8) An example of internally aligning HR practices is:
a. implementing an employee dress code that increases customer satisfaction.
b. creating a recruitment plan that targets the predominate groups in the organization’s labor
market.
c. implementing a training program which supports the company’s differentiation strategy.
d. setting up the organization’s reporting structure so that payroll and HR report to the same
senior executive.
e. designing a compensation program which offers competitive wages in order to attract and
retain high quality candidates.

9) The owner of J & J Car Dealership has always encouraged his sales staff to be competitive and
he has always taken a “hands off” approach when managing his employees. The sales staff
dresses casually and has very flexible schedules. All of these things describe the company’s:
a. organizational culture.
b. social responsibility.
c. labor force trends.
d. environmental influences.
e. differentiation strategy.

10) Jose’s supervisor often reprimands him in front of his coworkers, does not return his calls or
emails when he has a question, and communicates process changes to his coworkers, leaving
Jose left out. Jose’s supervisor has not demonstrated appropriate:
a. bias suppression.
b. ethical behavior.
c. distributive justice.
d. procedural justice.
e. interactional justice.

11) Establishing independent business units in several countries is known as a(n):
a. multinational strategy.
b. international strategy.
c. global strategy.
d. domestic strategy.
e. transnational strategy.

12) Before deciding to move the assembly of its computer components overseas, BCD Industries
should have taken all of the following into consideration as it relates to managing its
employees EXCEPT:
a. the culture of the overseas country and how it might impact the work ethic of its
employees.
b. the cost of labor in the U.S compared to the overseas company for this specific type of
work.
c. the amount of unemployment claims it may have if overseas employees have to be
down-sized.
d. the availability of employees to do this type of work in the overseas country.
e. the skill level of the labor force in the overseas country.

13) Jack’s family runs a farmer’s market that has been in the family for nearly 75 years. The
expectation is that Jack will some day take over managing the family business and keep
traditions that have been established regarding quality, customer service and giving back to the
community. The culture in which Jack lives most likely relates to the cultural dimension of:
a masculinity.
b. short term orientation.
c. individualism.
d. power distance.
e. collectivism.

14) All of the following are considered acceptable defenses in a disparate impact case EXCEPT:
a. the practice is a business necessity
b. bona fide seniority system.
c. job related.
d. a and c.
e. a, b and c are all acceptable defenses.

15) A clothing company that designs petite styles is searching for models who are less than 5’4”.
If all of the black applicants happen to be over 5’4” tall they could be excluded from
consideration based on:
a. mixed motive.
b. business necessity.
c. retaliation
d. job related.
e. hostile work environment.

16) Juan, a long time janitor and a flirtatious employee,
has once again been hanging around with

the secretarial staff and making what he feels are innocent comments. Juan says things such
as “The perfume you are wearing is very sexy,” or “That sweater you have on really accentuates
your curves.” Normally, the secretaries ignore his comments and know that he is harmless and
does not intend to harass them. However a new employee, Rose, has taken offense to the
repeated comments and has filed a complaint. As the HR Manager, you should:
a. follow up with Rose after you take the appropriate steps to resolve the issue so that she
knows it has been handled.
b. immediately give Juan the appropriate disciplinary action because the new employee’s
perceptions of him are accurate.
c. investigate the complaint immediately, ensuring you talk to any witnesses and to both Juan
and Rose to get their version of events.
d. All choices are correct.
e. a and c are correct.

17) Undue hardship could be described as all of the following EXCEPT:
a. building an exit ramp from the office which will violate local building ordinances but allow
a disabled employee to exit safely.
b. taking away certain tasks from a disabled employee and requiring other employees to do
the work, which then slows their work down and impacts productivity.
c. allowing an employee to have Sunday off to attend church as long as they can find
coverage by swapping another shift with a coworker.
d. modifying a work station which will then create a safety hazard for other employees who
work in the area.
e. All of the above are an undue hardship.

18) All of the following statements about sexual harassment are correct EXCEPT:
a. If an employee did not report the harassment and the company can show they have a
clearly communicated policy about how to report sexual harassment issues, the company
has a better chance of defending a claim of harassment.
b. Physical contact must take place in order for sexual harassment to be proven.
c. Managers are required to take action as soon as they become aware that sexual harassment
may have occurred.
d. If a reasonable person would find the particular behavior offensive then it is considered
sexual harassment.
e. Sexual harassment is illegal under Title VII because it is a type of discrimination that
impacts employment conditions.

19) Every job, even those that are similar in nature such as an RN and LPN, require different types
of levels of KSAs in order for the person performing the job to be successful. KSA stands for:
a. keenness, skills, and achievement.
b. kindness, sincerity, and admiration.
c. knowledge, self esteem, and aptitude.
d. knowledge, skills, and accountability.
e. knowledge, skills, and abilities.

20) In order to determine what types of competencies are necessary to perform a job successfully,
an organization must complete a:
a. job analysis.
b. job characteristics model.
c. job design.
d. job simplification.
e. job description.

21) The competencies for a job identify things such as the level of education and the number of
years of experience required to hold the job, and are also known as:
a. a job description.
b. job identification.
c. a competitive advantage.
d. essential duties.
e. job specifications.

22) John is an expediter for a paper goods manufacturer. He has been asked to track how much
time he spends traveling to and from each department delivering supplies and how much time
he spends unloading and loading supplies onto his delivery cart. This is an example of:
a. performance feedback.
b. job simplification.
c. job specialization.
d. a time and motion study.
e. assembly line work.

23) Which of the following is the best example of a succession plan?
a. Steven was transferred from a branch office of the bank to the main office so that he could
learn more about the new services that are being offered. He will then return to his branch
office after three months of training and teach his employees there about the new services.
b. Lauren was demoted from her position as Menswear Department Manager and Eric, her
Assistant Manager, was placed in her role until a new manager is hired.
c. Dara, the VP of Distribution, has been mentoring Joseph, the Distribution Services
Manager, for the past three years because she is planning to retire at the end of this year
and Joseph will be taking over for her.
d. Paul is being trained to provide coverage in Jason’s department so he can provide support
to Jason’s employees when he goes on vacation.
e. Bob, a new employee, has been attending all of the management training programs offered
by his organization because he has hopes of being selected for a management position
someday and eventually running his department.

24) A custom wedding dress maker employs 5 seamstresses to assist her with alterations. During
the winter months the demand for her services declines, thereby ________________ her labor
_________________.
a. increasing; supply
b. increasing; shortage
c. decreasing; demand
d. decreasing; supply
e. increasing; demand

25) QPR Architects Inc. has experienced a slow down of work requests. They must lay off 5
employees and have decided to lay off the last 5 employees hired. Remaining employees felt
that Stan, a twenty-year employee who has performance issues, should have been laid off and
most likely believe that ________________ has occurred in regard to QPR’s workforce planning.
a. procedural injustice
b. discrimination
c. distributional injustice
d. wrongful termination
e. attrition

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Population
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Is the Population too Large? Is our population a concern? Make sure you support your answer. You may include examples of areas of the US that are overpopulated, etc. 
500 Words

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Shilow Company
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The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods:

  Current assets as of March 31:

     Cash
$8,000  
<s
pan>     Accounts receivable
$20,000  
     Inventory
$36,000  
  Buildings and equipment, net
$120,000  
  Accounts payable
$21,750  
  Capital stock
$150,000  
  Retained earnings
$12,250  

  
a.
The gross margin is 25% of sales.
b.
Actual and budgeted sales data:

  March (actual)
$50,000  
  April
$60,000  
  May
$72,000  
  June
$90,000  
  July
$48,000  

  
c.
Sales are 60% for cash and 40% on credit. Credit sales are collected in the month following sale. The accounts receivable at March 31 are a result of March credit sales.
d.
Each month’s ending inventory should equal 80% of the following month’s budgeted cost of goods sold.
e.
One-half of a month’s inventory purchases is paid for in the month of purchase; the other half is paid for in the following month. The accounts payable at March 31 are the result of March purchases of inventory.
f.
Monthly expenses are as follows: commissions, 12% of sales; rent, $2,500 per month; other expenses (excluding depreciation), 6% of sales. Assume that these expenses are paid monthly. Depreciation is $900 per month (includes depreciation on new assets.)
g.
Equipment costing $1,500 will be purchased for cash in April.
h.
Management would like to maintain a minimum cash balance of at least $4,000 at the end of each month. The company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of each month, up to a total loan balance of $20,000. The interest rate on these loans is 1% per month, and for simplicity, we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter.
 
Requirement 1:
Complete the following schedule using the above data. (Omit the “$” sign in your response.)
 
Requirement 2:
Complete the following using the above data. (Leave no cells blank – be certain to enter “0″ wherever required. Input all amounts as positive values. Omit the “$” sign in your response.)
 
Requirement 3:
Complete the following using the above data. (Omit the “$” sign in your response.)
 
Requirement 4:
Complete the following cash budget using the above data. (Leave no cells blank – be certain to enter “0″ wherever required. Show deficiencies, repayments, Interest and total financing preceded by a minus sign wherever appropriate. Enter all other amounts as positive values. Omit the “$” sign in your response.)
Requirement 5:
Prepare an absorption costing income statement, for the quarter ended June 30. (Input all amounts as positive values. Omit the “$” sign in your response.)

Requirement 6:
Prepare a balance sheet as of June 30. (Omit the “$” sign in your response.)

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Dave Dandy
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Objective: Identify, formulate, and solve technical and policy challenges in an InfoSEC position.

Background: Dave Dandy, Owner of David’s Dandy Doohickies (D.D.D.) has noticed that several of the intranet servers are located in the system administrator’s cube and have been for 3 months. The servers include these servers: a web server that hosts the HR system; an internal email server that routes mail destined for the “outside” to the world facing server in the DMZ; and an internal only ftp server used to hold proprietary design information on the new lone of framastats that D.D.D is developing.

The current server room at D.D.D. has no locks, cameras, or access lists. In fact, it still resembles the warehouse that it is housed in, lacking even a rudimentary fire extinguisher system. While there is a tape backup process, labels consist of small notes taped to each backup tape. There is also no centralized log management; list of who has administrative rights on any of the servers in the server room or outside the administrator’s cube.

Instructions: Remember there are three types of controls: administrative, technical, and policy. You first need to identify all of the security issues with D.D.D. Divide the issues identified into the three control categories. Each issue may over lap the categories and often do. For each issue, identify a specific technique in that control category to mitigate the issue. This is most easily done with a matrix but there are certainly many other acceptable ways. 

You should seek controls that will provide the most security effectiveness for the money. That said, Dave will listen to reasonable proposals for spending his money.

Deliverables: 

Submit a matrix or other suitable way of expressing the relationship between issue, type of control, and type of mitigation. Use proper citations when appropriate, so a reference page will also be required. Remember that security must be cost effective as well as effective so use wisdom when deciding to use a control or a mitigation technique.

While there are non-access control issues that you may include, the focus should be on those issues related to access control as we have discussed during this course.