You Are the Head of the IT Department at Panther

question 9

Multiple Choice

You are the head of the IT department at Panther Designs,Inc.A systems review reveals that your firm has poor control procedures for preventing inadvertent programming errors.However,you are not concerned because you feel Panther Designs has strong compensating controls.What control likely exists to give you this confidence?

• A)The internal audit department processes test data at Panther Designs.
• B)Panther Designs pays its employees well,decreasing the likelihood of errors.
• C)Panther Designs only hires competent programmers,decreasing the likelihood of errors.
• D)All of Panther Design's IT applications are less than 2 years old.

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Definitions:

Diminishing Marginal Returns

A principle stating that as more of a variable input is added to a fixed input, the additional output produced from each new unit of input eventually decreases.

Circulation Numbers

Refers to the number of units (such as newspapers or magazines) distributed to the public within a specified time frame.

Marginal Product

The Marginal Product is the additional output that is produced by employing one more unit of a factor of production, holding other factors constant.

Labor

Any mental or physical exertion on the part of a human being that is used in the production of a good or service. One of the four economic resources.