Kai Keoni Has Created Custom Statues Made Out of Scrap

question 43

Multiple Choice

Kai Keoni has created custom statues made out of scrap metal for over ten years.He lives above his shop in Martha's Vineyard,Maryland.Kai is an accounting fanatic and has kept detailed records of every statue he has ever created.For every sale,he obtains the customer's name and address,a description of the statue,and a picture of the statue sold to the customer.His unique style has recently attracted the attention of several celebrities.Ready to take his business to the next level,Kai has hired you to construct an accounting information system,which he wants modeled after his paper records.As you look over his records,you notice that some customer last names have different first names in different records.For example,R.Framington Farnsworth,Bob Farnsworth,and Snake Farnsworth all seem to be the same person.You explain to Kai that every customer must be identified by a unique customer number in the AIS.You are referring to the

• A) entity integrity rule.
• B) referential integrity rule.
• C) update anomaly.
• D) insert anomaly.

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Definitions:

Opportunity Costs

The loss of potential gain from other alternatives when one particular alternative is chosen over others.

Marginal Revenue

The supplementary income produced through the sale of an extra unit of a product or service.

Equilibrium Price

The price at which the quantity of goods suppliers are willing to produce equals the quantity of goods consumers are willing to buy.

Normal Profit

The minimum level of profit necessary for a company to remain competitive in the market, covering opportunity costs but not generating economic profit.