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NEW QUESTION 41
Which of the following represents a significant deficiency m the design of controls?
- A. Management overrides of the accounting for transactions
- B. Inadequate controls over access to computer systems, data and files
- C. Evidence of misrepresentation by accounting personnel
- D. Failure to follow up and correct previously identified internal control deficiencies
Answer: B
NEW QUESTION 42
Which one of the following is the most important factor in the successful implementation of a balanced scorecard?
- A. Providing a feedback mechanism
- B. Linking the scorecard to external criteria
- C. Setting appropriate measurement criteria
- D. Obtaining management buy-in and support
Answer: B
NEW QUESTION 43
Life-cycle costing is most effective when used with products that have a
- A. long development period and many costs incurred during manufacturing
- B. short development period and few costs incurred poor to manufacturing
- C. long development period and many costs incurred poor to manufacturing
- D. short development period and many costs Incurred during manufacturing
Answer: C
NEW QUESTION 44
Trans Action inc. (TAI) is a multidivisional supplier of power train components to the automobile industry.
Following is selected information for the year just ended for each of the three divisions. Gear Axle and Housing.
The tai Board of Directors has decided to reward the employees or the divisions by allowing them to share in a bonus pool equal to S100.000 for each percentage point the return on investment (ROI) earned by their division exceeded the ROI of comparable firms as shown in the table below.
Rank the amounts in the bonus pools for the respective divisions from highest to lowest.
- A. Gear. Housing, Axle
- B. Axle, Gear, Housing
- C. Axle, Housing, Gear
- D. Housing, Axle, Gear.
Answer: D
NEW QUESTION 45
Company A currently uses U.S GAAP while Company 8 is currently using IFRS. Both companies are individually in the process of internally developing trademarks that have been demonstrated to be technically and economically feasible Both companies have incurred development costs in the current year with respect to their internally developed trademarks. Which one of the following best describes how Company A and Company B should account for these development costs in their financial statements?
- A. Both Company A and Company B should capitalize the development costs
- B. Company A should expense the development costs while Company B should capitalize the development costs
- C. Company A should capitalize the development costs while Company B should expense the development costs
- D. Both Company A and Company B should expense the development costs
Answer: D
NEW QUESTION 46
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