The Optimal Disaster Recovery Plan in Terms of Cost and Time

question 180

Multiple Choice

The optimal disaster recovery plan in terms of cost and time is where on the disaster recovery cost curve?

• A) Where the two cost effects intersect
• B) When the cost to the company of unavailability of information and technology is high
• C) When the cost to the company of recovering from a disaster over time is high
• D) When the two cost effects are furthest apart

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Definitions:

360-Day Year

An accounting simplification that assumes there are 360 days in a year to facilitate easier interest calculations.

Direct Write-Off Method

An accounting practice where bad debts are written off against income at the time they are determined to be uncollectible, instead of being provided for in advance.

Account Receivable

Funds that customers owe a company for products or services provided on credit.

Dishonored Note

A promissory note that has not been paid by the maker at the maturity date.