COBIT Was Developed To

question 149

Multiple Choice

COBIT was developed to:

• A) provide guidance to managers, users, and auditors on the best practices for the management of information technology
• B) identify specific control plans that should be implemented to reduce the occurrence of fraud
• C) specify the components of an information system that should be installed in an e-commerce environment
• D) suggest the type of information that should be made available for management decision making

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Definitions:

Residual Income

The income that remains after deducting all costs, including the cost of capital.

Turnover

The total sales generated by a business within a specific period. It can also refer to the rate at which employees leave a company and are replaced.

Residual Income

Residual income is the profit earned after subtracting all required costs of capital from the operating profit.

Minimum Required Rate

The least acceptable rate of return on an investment, often used in capital budgeting to assess potential projects.