An Organization Has Implemented a Software System That Requires a Supervisor

question 297

Multiple Choice

An organization has implemented a software system that requires a supervisor to approve transactions that would cause treasury dealers to exceed their authorized limit. This is an example of which of the following types of controls?

• A) Preventive controls.
• B) Detective controls.
• C) Soft controls.
• D) Directive controls.

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Definitions:

Marginal Value

Additional benefit derived from purchasing one more unit of a good.

Consumer Surplus

The gap between the price consumers are ready to pay for a good or service and the price they actually incur.

Marginal Revenue

The surplus revenue acquired from the sale of one more unit of a good or service.

Profit Maximizing Output

The level of production at which a firm achieves the highest possible profit, determined by the point where marginal cost equals marginal revenue.