You Are Analyzing the Exceptions That Arose After Your Control

question 22

Essay

You are analyzing the exceptions that arose after your control testing of credit limit approvals.There were four exceptions where credit had not been approved.One was for a customer that was subsequently placed on C.O.D.(cash on delivery),and three occurred while the business was in the middle of its busy season,processing three times more transactions than most other times of the year.The company's busy season normally lasts about two months.
Required:A)What is an anomaly? B)Are any of the exceptions that you found anomalous? Why or why not? C)Provide an example of a credit approval testing exception that would be anomalous.

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Definitions:

Producer Surplus Gain

The difference between what producers are willing to accept for a good versus what they actually receive, often resulting from higher market prices.

Consumer Surplus Loss

The reduction in consumer surplus due to changes in market conditions such as price increases or decreases in available goods.

Individual Seller

A single entity or person engaged in the act of selling goods or services, typically on a small scale or directly to consumers.

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive, due to higher market price.