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Business Knowledge for Internal Auditing Questions and Answers
A company produces water buckets with the following costs per bucket:
Direct labor = 82
Direct material = $5
Fixed manufacturing = 83.50
Variable manufacturing = 82.50
The water buckets are usually sold for $15. However, the company received a special order for 50.000 water buckets at 311 each.
Assuming there is adequate manufacturing capacity and ail other variables are constant , what is the relevant cost per unit to consider when deciding whether to accept this special order at the reduced price?
An analytical model determined that on Friday and Saturday nights the luxury brands stores should be open for extended hours and with a doubled number of employees
present; while on Mondays and Tuesdays costs can be minimized by reducing the number of employees to a minimum and opening only for evening hours Which of the
following best categorizes the analytical model applied?
A manager at a publishing company received an email that appeared to be from one of her vendors with an attachment that contained malware embedded in an Excel spreadsheet . When the spreadsheet was opened, the cybercriminal was able to attack the company's network and gain access to an unpublished and highly anticipated book. Which of the following controls would be most effective to prevent such an attack?