1. Which activity is not normally performed by managerial accountantsa. Decide the best level of inventory to be maintainedb. Assisting managers to interpret data in managerial accounting reportsc. Designing systems to provide information for internal and external reportsd. Gathering data from sources other than the accounting system

2. For a hospital, what type of position (line or staff) is each of the followingEmergency Room Manager Human Resources (Personnel) Manager

a. Staff Staffb. Staff Linec. Line Staffd. Line Line

3. The set of processes that transform raw materials into finished products is known as a a. Differentiation strategyb. Flexible manufacturing systemc. Lowest cost strategyd. Value chain

4. An MAS consultation as opposed to an MAS engagement, generally involves advice of information given by a CPA that is based upona. An analytical approach and processb. Existing personal knowledge about the clientc. An incidental effort devoted to a combination of activitiesd. The CPA’s ability to implement management’s recommendation

5. Which of the following statements is truea. Harmonious relationship with the client is not essential in successfully conducting the problem solving

process in a consultancy engagementb. There is no need to prepare a written announcement to the client’s employees on the appointment of

the consultant as well as the terms of the consulting engagement if a contract has already been drawn and signed by the client’s representative and consultant

c. Continuing to take on every consulting opportunities could mean that the consultant’s growth in expertise and reputation are not advancing

d. A consultant can simply dump or abandon a client when the same does not promise to be financially rewarding to the practice anymore

6. Which group of characteristics best describes decision support systema. Analytical models, specialized databases, and interactive computer-based modelling processb. Analytical models, specialized databases, and interactive computer-based modelling process, and the

decision maker’s own insights and judgmentsc. Analytical models, programming models, application models, and interactive computer-based modelling

processd. Expert systems, model based information, electronic data interchange and the decision maker’s own

insight and judgments7. Microcomputer systems have enhanced use with systems software and application software. Which one of

the following statements concerning microcomputer systems is falsea. Database management systems are available for microcomputer systemsb. An operating system program is critical software package for microcomputersc. Electronic spreadsheet packages are types of applications software for microcomputersd. Integrated packages are examples of operating systems for microcomputers

8. Which of the following will cause a decrease in a company’s accounts receivable turnover ratioa. Tighten credit standardsb. Enforce credit terms more aggressively

c. Ease enforcement of credit termsd. Factor all accounts receivable

9. Jack & Sons, Inc. has a 2:1 acid test (quick) ratio. This would decrease to less than 2 to 1 ifa. The company purchased inventory on open accountb. The company sold merchandise on open account that earned a normal gross marginc. The company collected an accounts receivabled. The company paid an accounts payable

10. Slippers Mart has sales of P3 million its credit period and average collection period are both 30 days, and 1% of its sales end as bad debts. The general manager intends to extend the credit period of 45 days which will increase sales by P300,000. However, bad debts losses on the incremental sales would be 3%. Costs of products and related expenses amount to 40% exclusive of the costs carrying receivables of 15% and bad debts expenses. Assuming 360 days a year, the changes in policy would result to incremental investment in receivables ofa. 24,704b. 701,573c. 65,000d. 9,750

11. The following common-size income statements are available for Kathy Corporation2010 2009

Sales 100% 100%Cost of Sales 60% 70%Gross Profit 40% 30%Operating Expenses 20% 18%Net Income 20% 12%The trend percentage for sales 120% 100%What should be the trend percentage of gross profit for 2010?a. 48%b. 130%c. 160%d. 195%

12. On budgeting, all of the following are not valid, excepta. A sales budget and a sales forecasted are the same thingb. Responsibility budget identifies revenue and costs with the individual responsible for their incurrencec. The best way to establish budget figures is to use last year’s actual cost and activity data as this year’s

budget estimatesd. The primary purpose of the cash budget is to show the expected cash balance at the end of the budget

period13. Allocated common fixed costs

a. Can make a product line appear to be unprofitableb. Are always incremental costsc. Are always relevant in decisions involving dropping a product lined. Responses a, b and c are all correct

14. The internal rate of returna. Ignores the time value of moneyb. Equates a project’s cash inflows with its outflowsc. Equates a project’s cash outflows with its expensesd. Equates the present value of a project’s cash inflows with the present value of the cash outflowse. Equates the present value of a project’s cash flows with the future value of the project’s cash flows

15. Consider the following statements regarding the economic pricing model

I. The economic model is limited in use because a firm’s demand curve is difficult to determineII. The marginal revenue and marginal cost model is valid for all forms of market organization (perfect

competition, oligopoly, and so forth)III. Cost accounting systems are not designed to measure the marginal changes in cost incurred as

production and sales increaseWhich of the above statement/s is (are) true

a. I only b. III onlyc. I and IIId. II and IIIe. I, II, and III

16. The four tasks that follow take place in the concept known as target costing1 – Value engineering 3 – Establish a target cost2 – Establish a target selling price 4 – Establish a target profita. 1,3,4,2b. 3,1,4,2c. 2,4,3,1d. 2,3,1,4

17. The purpose of the balance scorecard is best described as helping an organizationa. Develop customer relationsb. Mobilize employee skills for continuous improvements in processing capabilities, quality and response

timesc. Translate an organization’s mission and strategy into a set of performance measures that help to

implement the strategyd. Introduce innovate products and services desired by target customers

18. As a company becomes more conservative in its working capital policy, it would tend to have a(n)a. Decrease in its acid-test ratiob. Increase in the ratio of current liabilities to noncurrent liabilitiesc. Increase in the ratio of current assets to units of outputd. Increase in funds invested in common stock and decrease in funds invested in marketable securities

19. Spike Co.’s budgeted sales and budgeted cost of sales for the coming year are P212,000,000 and P132,500,000 respectively. Short-term interest rates are expected to average 5%. If Spike could increase inventory turnover from its current 8.0 times per year to 10.0 times per year, its expected cost savings in the current year would bea. 165,625b. 0c. 3,312,500d. 828,125

20. A firm has daily cash receipts of P100,000 and collection time of 2 days. A bank has offered to reduce the collection time on the firm’s deposits by 2 days for a monthly fee of 500. If money market rates are expected to average 6% during the year, the net annual benefit (loss) from having this service isa. 3,000b. 12,000c. 0d. 6,000

21. The term “short selling” is thea. Selling of a security that was purchased by borrowing money from a brokerb. Selling of a security that is not owned by the sellerc. Selling of all the shares you own in a company in anticipation that the price will decline dramatically

d. Betting that a stock will increase by certain amount within a given period of time22. A company with P4.8 million in credit sales per year plans to relax its credit standards, projecting that this

will increase credit sales by P720,000. The company’s collection period for new customers is expected to be 75 days and the payment behaviour of the existing customers is not expected to change. Variable costs are 80% of sales. The firm’s opportunity cost is 20% before taxes. Assuming a 360-day year, what is the company’s benefit (loss) on the planned change in credit termsa. 0b. 28,800c. 144,000d. 120,000

23. Which one of the following would not be considered a carrying associated with inventorya. Insurance costb. Cost of capital invested in the inventoryc. Cost of obsolescenced. Shipping costs

24. Malay Corporation uses the standard economic order quantity (EOQ) model. If the EOQ for Product A is 200 units and Malay maintains a 50-unit safety stock for the item, what is the average inventory of Product Aa. 250 unitsb. 150 unitsc. 125 unitsd. 100 units

25. Assuming a 360-day year, the current price of a P100 treasury bill due in 180 days on a 6% discount basis isa. P97b. P94c. P100d. P93

26. A company had P500,000 of sales for the year jus ended and is projecting sales of P600,000 for the coming year. For every P1 increase in sales, 38 centavos of additional financing is required for the purchase of additional assets. The projected profit margin is 20%, and 60% of profits will be retained for reinvestment in the company. The amount of additional external financing needed by the company in the coming year isa. P0b. P38,000c. P86,000d. P110,000

27. Game Corporation’s P1,000 par value convertible debentures are selling at P1,040 when its stock is selling for P46 per share. If the conversion ratio is 20, what will be the conversion pricea. P22.61b. P46c. P50d. P52

28. The best advantage of a zero-coupon bond to the issuer is that thea. Bond requires a low issuance costb. Bonds requires no interest income calculation to the holder or issuer until maturityc. Interest can be amortized annually by the APR method and need not be shown as an interest expense to

the issuerd. Interest can be amortized annually on a straight-line basis but is a noncash outlay

29. A high sales-to-working-capital ratio could indicatea. Unprofitable use of working capitalb. Sales are not adequate relative to available working capital

c. The firm is undercapitalizedd. The firm is not susceptible to liquidity problems

30. Baylor Company paid out one-half of last year’s earnings in dividends. Baylor’s earnings increased by 20% and the amount of its dividends increased by 15% in the current year. Baylor’s dividend payout ratio for the current year wasa. 50%b. 57.5%c. 47.9%d. 78%

31. When compared with normal spoilage, abnormal spoilagea. Arises more frequently from factors that are inherent in the manufacturing processb. Is given the same accounting treatment as normal spoilagec. Is generally thought to be more controllable by production management than normal spoilaged. Is not typically influenced by the “tightness” of production standards

32. The upper limit of a company’s productive output capacity given its existing resources is calleda. Excess capacityb. Cycle-time capacityc. Practical capacityd. Theoretical capacity

33. The responsibility for safeguarding financial assets and arranging financial is given to thea. Controllerb. Chief financial officerc. Comptrollerd. Treasurer

34. The budgeted total volume of 250,000 units was based upon Xerbert’s achieving a market share of 10%. Actual industry volume was 2,580,000 units. Xerbert’s increased volume owing to improved market share isa. 100%b. 80%c. 20%d. 4%

Questions 35 and 36 are based on the following information. A company manufactures a product that has the direct materials, standard cost presented below. Budgeted and actual information for the current month for the manufacture of the finished product and the purchase and use of the direct materials is also presentedStandard cost for direct materials: 1.60lbs @P2.50 per lb =P4

Budget ActualFinished goods (in units) 30,000 32,000Direct materials usage (in pounds) 48,000 51,000Direct materials purchases (in pounds) 48,000 50,000Total cost of direct materials purchases P120,000 P120,000

35. The direct materials price variance for the current month isa. P7,500 unfavorableb. Zeroc. P5,000 favorabled. P5,100 favorable

36. The direct materials efficiency variance for the current month isa. P500 favorableb. P3,000 favorablec. P7,500 unfavorabled. P8,000 unfavorable

37. A PERT network has only two activities on its critical path. These activities have standard deviations of 6 and 8, respectively. The standard deviation of the project time isa. 7b. 10c. 14d. 48

38. Klaus is a divisional manager for Tot Toys. He has been assigned the task of creating a production budget for his division, which produces the company’s most popular stuffed animal. Budgeted sales for this toy for the next year have been set at 650,000 units, desired ending finished goods inventory is 200,000 units, and Klaus would like there to be 100,000 equivalent units in ending work-in-process inventory. The starting finished goods inventory for the next year will be 300,000 units, with 75,000 equivalent units in beginning work-in-process inventory. How many equivalent units should Klaus plan for his division to producea. 550,000b. 575,000c. 725,000d. 925,000

Questions 39 and 40 are based on the following information. Fabro Inc., produced 1,500 units of Product RX-6 last week. The inputs to the production process for Product RX-6 were as follows:

450 pounds of Material A at a cost of P1.50 per pound300 pounds of Material A at a cost of P2.75 per pound300 labor hours at a cost of P15 per hour

39. What is the total factor productivity for product RX-6a. 2.00 units per poundb. 5.00 units per hourc. 0.25 units per peso inputd. 0.33 units per peso input

40. What is the best productivity measure for the first-line supervisor in Fabro Inc.’s production planta. 5.00 units per labor hourb. P2.00 per poundc. 0.33 units per peso inputd. P15.00 per labor hour

Questions 41 to 44 are based on the following information. Ardmore Enterprises uses a standard cost system in its small appliance division. The standard cost of manufacturing one unit of Zeb is as follows:

Materials – 60 pounds at P1.50 per pound P90Labor – 3 hours at P12 per hour 36Factory overhead – 3 hours at P8 per hour 24

The budgeted variable factory overhead rate is P3 per labor hour and the budgeted fixed factory overhead is P27,000 per month. During May, Ardmore produced 1,650 units of Zeb compared with a normal capacity of 1,800 units. The actual cost per unit was as follows:

Materials (purchased and used)58 lbs at P1.65 per lbs P95.70Labor – 3.1 hours at P12 per hour 37.20Factory overhead – P39,930 per 1,650 units 24.20

41. The total materials quantity variance for May isa. P14,355 favorableb. P14,355 unfavorablec. P4,950 favorabled. P4,950 unfavorable

42. The materials price variance for May isa. P14,355 unfavorableb. P14,850 unfavorablec. P14,355 favorable

d. P14,850 favorable43. The labor rate variance for May is

a. P1,920 favorableb. P0c. P4,950 unfavorabled. P4,950 favorable

44. The flexible budget overhead variance for May isa. P3,270 unfavorableb. P3,270 favorablec. P1,920 unfavorabled. P1,920 favorable

45. If overhead is applied on the basis of units of output, the variable overhead efficiency variance will bea. Zerob. Favorable, if output exceeds the budgeted levelc. Unfavorable, if output is less than the budgeted leveld. A function of the direct labor efficiency variance

46. Which one of the following statements pertaining to the return on investment (ROI) as a performance measurement is incorrect?a. When the average age of assets differs substantially across segments of a business, the use of ROI may

not be appropriateb. ROI relies on financial measures that are capable of being independently verified, while other forms of

performance measures are subject to manipulationc. The use of ROI may lead mangers to reject capital investment projects that can be justified by using

discounted cash flow modelsd. They use of ROI can make it undesirable for a skilful manager to take on trouble-shooting assignments

such as those involving turning around unprofitable divisions47. Charlie’s Service Co., is a service center. For the month of June, Charlie’s had the following operating

statisticsSales P750,000Operating income 25,000Net profit after taxes 8,000Total assets available 500,000Shareholders’ equity 200,000Cost of capital 6%Charlie’s has aa. Return on investment of 3.33%b. Residual income of P(5,000)c. Return on investment of 6%d. Residual income of P(20,000)

48. Assume Avionics Industrials reported at year-end that operating income before taxes for the year equalled P2,400,000. Long-term debt issued by Avionics has a coupon rate equal to 6% and its cost of equity is 8%. The book value of the debt currently equals its fair value, and the book value of the equity capital for Avionics is P900,000 less than its fair value. Current assets are listed at P2,000,000 and long-term assets equal P9,600,000. The claims against those assets are in the form of P1,500,000 in current liabilities and P2,200,00 in long term liabilities. The income tax rate for Avionics is 30 percent. What is the economic value added (EVA)a. P731,240b. P948,760c. P1,668,760

d. P1,680,00049. Goal congruence is

a. The desire and the commitment to achieve a specific goalb. The sharing of goals by supervisors and subordinatesc. The extent to which individuals have the authority to make decisionsd. The extent of the attempt to accomplish a specific goal

50. A limitation of transfer prices based on actual cost is that theya. Charge inefficiency to the department that is transferring the goodsb. Can lead to suboptimal decisions for the company as a wholec. Must be adjusted by some mark-upd. Lack clarity and administrative convenience

51. Assume that the Entertainment Division is able to purchase a large quantity of video cards from an outside source at P8.70 per unit. The Video Cards Division, having excess capacity, agrees to lower its transfer price P8.70 per unit. This action woulda. Optimize the profit goals of the Entertainment Division while subverting the profit goals of Parkside Incb. Allow evaluation of both divisions on the same basisc. Subvert the profit goals of the Video Cards Division while optimizing the profit goals of the

Entertainment Divisiond. Optimize the overall profit goals of Parkside Inc

52. Which of the following is a weakness of using MBO for motivating employees?a. Employees may believe that they control situations that arise in the companyb. Employees maybe forced to place too much emphasis on quantitative factorsc. Employees may participate too much in the goal-setting processd. Employees may become too trusting and too dependent on the “team” to get things done

53. American Coat Company estimates that 60,000 special zippers will be used in the manufacture of men’s jackets during the next year. Reese Zipper Company has quoted a price of P0.60 per zipper. American would prefer to purchase 5,000 units per month, but Reese is unable to guarantee this delivery schedule, in order to endure availability of these zippers, American is considering the purchase of all 60,000 units at the beginning of the year. Assuming American can invest cash at 8%, the company’s opportunity cost of purchasing the 60,000 units at the beginning of the year isa. P1,320b. P1,440c. P1,500d. P2,640

54. Power Systems, Inc. manufactures jet engines for the AFP on a cost-plus basis. The cost of a particular jet engine the company manufactures is shown belowDirect materials P200,000Direct labor 150,000Overhead: Supervisor’s salary 20,000Fringe benefits on direct labor 15,000Depreciation 12,000Rent 11,000If production of this engine were discontinued, the production capacity would be idle, and the supervisor would be laid off. When asked to bid on the next contract for this engine, the minimum unit price that Power System should bid is a. P408,000b. P365,000c. P397,000d. P385,000

55. Market-skimming pricing strategies could be appropriate whena. No buyers want the product at a high priceb. The cost of producing a small volume are lowc. Competitors can easily enter the marketd. The product is of poor quality

56. A company’s product has an expected 4-year life cycle from research, development, and design through its withdrawal from the market. Budgeted costs areUpstream costs (R&D, design) P2,000,000Manufacturing costs 3,000,000Downstream costs (marketing, distribution,Customer service) 1,200,000After-purchase costs 1,000,000The plans to produce 200,000 units and price the product at 125% of the whole-life unit cost. Thus, the budgeted unit selling price isa. P15b. P31c. P36d. P45

57. In production management, product breakdown into component parts and lead times for procuring these parts is necessary fora. A critical path method (CPM) systemb. A materials requirements planning (MRP) systemc. An economic order quantity (EOQ) systemd. An ABC system

58. The inventory model that follows the concept that 80% of the value of an inventory is in 20% of the inventory items is thea. ABC systemb. Economic order quantity (EOQ) modelc. Just-it-time inventory systemd. Materials requirements planning (MRP) systemQuestions 59 and 60 are based on the following information. The Huron Corporation purchases 60,000 headbands per year. The average purchase lead time is 20 working days. Maximum lead time is 27 working days. The corporation works 240 days per year

59. Huron Corporation should carry safety stock of a. 5,000 unitsb. 6,750 unitsc. 1,750 unitsd. 250 units

60. Huron Corporation should reorder headbands when quantity in inventory reachesa. 5,000 unitsb. 6,750 unitsc. 1,750 unitsd. 5,250 units

61. Product A accounts for 75% of a company’s total sales revenue and 60% of its variance costs. Product B accounts for 25% of total sales revenue and 85% of variable costs. What is the breakeven point given fixed costs of P150,000a. P375,000b. P444,444c. P500,000

d. P545,45562. A company’s breakeven point in sales pesos maybe affected by equal percentage increases in both selling

price and variable cost per unit (assume all other factors are constant within the relevant range). The equal percentage changes in selling price and variable cost per unit will cause the breakeven point in sales pesos toa. Decrease by less than the percentage increase in selling priceb. Decrease by more than the percentage increase in the selling pricec. Increase by the percentage change in variable cost per unitd. Remain unchanged

63. The Childers Company sell widgets. The Company breaks even at an annual sales volume of 75,000 units. Actual annual sales volume was 100,000 units, and the company reported a profit of P200,000. The annual fixed costs for the Childers Company area. P800,000b. P600,000c. P75,000d. Insufficient information to determine amount of fixed costs

64. A depreciation tax shield isa. An after-tax cash outflowb. A reduction in income taxesc. The cash provided by recording depreciationd. The expense caused by depreciation

65. The bailout payback methoda. Incorporates the time value of moneyb. Equals the recovery period from normal operationsc. Eliminates the disposal values from the payback calculationd. Measures the risk is a project is terminated

66. Garfield, Inc is considering a 10-year capital investment project with forecasted revenues of P40,000 per year and forecasted cash operating expenses of P29,000 per year. The initial cost of the equipment for the project is P23,000, and Garfield expects to sell the equipment for P9,000 at the end of the tenth year. The equipment will be depreciated over 7 years. The project requires a working capital investment of P7,000 at its inception and another P5,000 at the end of year 5. Assuming a 40% marginal tax rate, the expected net cash flow from the project in the tenth year isa. P32,000b. P24,000c. P20,000d. P11,000

67. The proper discount rate to use in calculating certainty equivalent net present value is the a. Risk-adjusted discount rateb. Cost of capitalc. Risk-free rated. Cost of equity capital

68. The use of an accelerated method instead of the straight-line method of depreciation in computing the net present value of a project has the effect ofa. Raising the hurdle rate necessary to justify the projectb. Lowering the net present value of the project c. Increasing the present value of the depreciation tax shieldd. Increasing the cash outflows at the initial point of the project

69. Lawson Inc. is expanding its manufacturing plant, which requires an investment of P4 million in new equipment and plant modifications. Lawson’s sales are expected to increase by P3 million per year as a result

of the expansion. Cash investment in current assets averages 30% of sales; accounts payable and other current liabilities are 10% of sales. What is the estimated total investment for this expansiona. P3.4 millionb. P4.3 millionc. P4.6 milliond. 4.9 million

70. Jackson Corporation uses net present value techniques in evaluating its capital investment projects. The company is considering a new equipment acquisition that will cost P100,000, fully installed, and have a zero salvage value at the end of its five-year productive life. Jackson will depreciate the equipment on a straight-line basis for both financial and tax purposes. Jackson estimates P70,000 in annual recurring operating cash income and P20,000 in annual recurring operating expenses. Jackson’s cost of capital is 12% and its effective income tax rate is 40%. What is the net present value of this investment on an after-tax basisa. P28,840b. P8,150c. P36,990d. P80,250

71. If an investment project has a profitability index of 1.15 thea. Project’s internal rate of return is 15%b. Project’s cost of capital is greater than its internal rate of returnc. Project’s internal rate of return exceeds its net present value d. Net present value of the project is positive

Questions 72 to 75 are based on the following information. The Dickins Corporation is considering the acquisition of a new machine at a cost of P180,000. Transporting the machine to Dickins’ plant will cost an additional P18,000. It has a 10-year life and is expected to have a salvage value of P10,000. Furthermore, the machine is expected to produce 4,000 units per year with a selling price of P500 and combined direct materials and direct labor costs of P450 per unit. Tax regulations permit machines of this type to be depreciated using the straight-line method over 5 years with no estimated salvage value. Dickins has a marginal tax rate of 40%

72. What is the net cash outflow at the beginning of the first year that Dickins should use in a capital budgeting analysisa. P(170,000)b. P(180,000)c. P(192,000)d. P(210,000)

73. What is the net cash flow for the third year that Dickins Corporation should use in a capital budgeting analysisa. P136,800b. P136,000c. P128,400d. 107,400

74. What is the net cash flow for the tenth year of the project that Dickins should use in a capital budgeting analysisa. P200,000b. P158,000c. P136,800d. P126,000

75. What is the approximate payback period on the new machinea. 1.05 yearsb. 1.54 yearsc. 1.33 yearsd. 2.22 years

76. An analysis of a company’s planned equity financing using the Capital Asset Pricing Model (for Security Market Line) incorporates only thea. Expected market earnings, the current treasury bond yield, and the beta coefficientb. Expected market earnings and the price-earnings ratioc. Current treasury bond yield, the price-earnings ratio, and the beta coefficientd. Current treasury bond yield and the dividend payout ratio

77. In linear programming, the shadow price refers t thea. Measurement of the value of relaxing a constraint in a problem with dual variablesb. Marginal change in profit associate with a change in the contribution margin of one of the variablesc. Unused capacity available once the optimal solution is obtainedd. Variables that are included in the final solution of the linear programming model

78. When using PERT (Program Evaluation Review Technique), the expected time for an activity when given an optimistic time (A), a pessimistic (B), and a most likely time (m) is calculated by which one of the following formulasa. (b – a) ÷ 2b. (a + b) ÷ 2c. (a + 4m + b) ÷ 6d. (4abm) ÷ 6

79. What coefficient of correlation results from the following dataX Y1 102 83 64 45 2a. 0b. -1c. +1d. Cannot be determined from the data given

80. A particular manufacturing job is subject to an estimated 90% learning curve. The first unit required 50 labor hours to complete. What is the cumulative average time per unit after four units are completeda. 50.0 hoursb. 45.0 hoursc. 40.5 hoursd. 40.0 hours

81. The three major activities of systems design area. User interface design, data manipulation, and output analysisb. Process design, output design, and output analysisc. User interface design, data design, and process designd. Data design, input validation, and processing

82. The graphic portrayal of the flow of data and the information processing of a system, including computer hardware, is best displayed in aa. Data-flow diagramb. System flowchartc. Gantt chartd. Decision table

83. An information system (IS) project manager is currently in the process of adding a systems analyst to the IS staff. The new systems analyst will be involved with testing the new computerized system. At which stage of the systems development life cycle will the analyst be primarily used

a. Cost-benefit analysisb. Requirements definitionc. Flowcharting d. Implementation

84. The concept of timeliness of data availability is most relevant toa. Payroll systemsb. General ledger systemsc. Manual systemsd. Online systems

85. In auditing computer-based systems, the integrated test facility (ITF)a. Allows the auditor to assemble test transactions and run them through the computer system to test the

integrity of controls on a sample data baseb. Is a set of specialized software routines that are designed to perform specialized audit tests and store

audit evidencec. Is a concurrent audit technique that establishes a special set of dummy master files and enters

transactions to test the programs using the dummy files during regular processing runsd. Uses an audit log to record transactions and data having special audit significance during regular

processing runs