Application Controls

question 84

Multiple Choice

Application controls

• A) can be classified as input controls, processing controls, and output controls.
• B) govern the design, security, and use of computer programs and the security of data files in general throughout the organization.
• C) apply to all computerized applications and consist of a combination of hardware, software, and manual procedures that create an overall control environment.
• D) include software controls, computer operations controls, and implementation controls.

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Definitions:

Safety Inventory

Additional inventory kept to protect against variability in demand or supply, ensuring that stockouts are minimized.

Cycle Service Level

A measure of a company's ability to deliver products to customers within the committed time frame, often used as an indication of inventory management effectiveness.

Fill Rate

The percentage of customer demand that is met without backorders or stockouts, reflecting a company's ability to satisfy orders with available inventory.

Customer Fill Rate

A measure of the ability of a supply chain to deliver the requested product in the quantity and time agreed upon by the customer.