How Would You Test a Computer Application Designed to Re-Order

question 42

Multiple Choice

How would you test a computer application designed to re-order inventory automatically when it falls below a predetermined point?

• A) Examine purchase orders for proper management approval.
• B) Determine of the supplier is on the approved list.
• C) Perform tests of parameters to determine if purchase orders were generated when inventory was above the re-order point.
• D) All of the above.

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Definitions:

Total Costs

The sum of all expenses incurred in the production of goods or services, including direct and indirect costs, both variable and fixed.

Step-Down Method

A method of allocating costs whereby one service department’s cost is allocated to all remaining service departments and operating departments, and so on, until all service department costs are allocated to final products.

Death Spiral

A situation occurring when transfer prices include fixed costs and users reduce their use of the internal product or service. This further increases the transfer price (based on average cost) and more users reduce their demand.

Internal Pricing System

A method used by companies to assign a price to goods or services exchanged between the different divisions of the same company.