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Please Consider These Independent Cases as You Respond to the Question

question 17

Multiple Choice

Please consider these independent cases as you respond to the question: • Austin is the managing partner of a small CPA firm.In an effort to standardize certain internal business processes, Austin formed a team that developed a set of guidelines for tasks such as expense reimbursements and information technology purchases.After developing the guidelines, the team devised ways to determine if the processes are performing as expected.• Julie is the chief financial officer of PSC Corporation.She recently worked with a team to develop a broad set of principles that should characterize PSC's business processes.The team has applied those principles to some tasks in the accounting department; their next task is to teach other PSC employees about the principles.• Rob is an accountant at CTR Company.The owners of CTR, Lynn and Mark, don't know much about accounting, so Rob completes accounting tasks in whatever way seems best to him.Which level of the capability maturity model best describes Julie's company?

Definitions:

Fixed Per Order Cost

The set cost incurred each time an order is placed, regardless of the size of the order.

Carrying Costs

Expenses incurred by holding inventory or assets, including storage, insurance, and taxes.

Product Demand

Refers to the desire and necessity for consumers to purchase a specific good or service.

Carrying Cost

Costs incurred by holding inventory, including storage, insurance, and opportunity costs, over a specific period.