Consider the Following Short Case as You Respond to the Question

question 12

Multiple Choice

Consider the following short case as you respond to the question: Abruzzi's Italian Kitchen is a small family restaurant with an administrative staff of four people.Giuseppi Abruzzi is the chief executive officer; his wife Maria is the chief financial officer.Their son Antonio is responsible for all transactions dealing with kitchen supplies, including the raw materials for menu items; their son Carlo is responsible for all transactions dealing with dining room supplies, such as eating utensils.The restaurant's administrative practices have developed over the ten years of its existence with minimal reliance on information technology and formal procedures and a stronger emphasis on interpersonal relationships with a few reliable vendors.Once a month, Antonio places orders for kitchen supplies with one of four vendors based on price; the supplies are usually received within ten calendar days.On receipt of the supplies, Antonio pays the vendor with a company check.Carlo follows a similar process for dining room supplies, but works with a set of three vendors, none of which sell kitchen supplies.Internal control would be strengthened at Abruzzi's Italian Kitchen if:

• A)The company broadened its pool of vendors for kitchen and dining room supplies.
• B)Maria took over the responsibility of paying vendors.
• C)Both the company broadened its pool of vendors for kitchen and dining room supplies and Maria took over the responsibility of paying vendors.
• D)Neither the company broadened its pool of vendors for kitchen and dining room supplies nor Maria took over the responsibility of paying vendors.

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Definitions:

Linear Model

A mathematical model that assumes a linear relationship between input variables (independent variables) and a single output variable (dependent variable).

Scatterplot

A scatterplot is a type of graph used in statistics to display the relationship between two numerical variables, with data points represented as dots in a two-dimensional space.

Data Set

A group of related information sets that consists of distinct parts yet can be managed as a single entity by a computer.

Life Expectancy

The average number of years an individual or population is expected to live, based on current mortality rates and other demographic factors.