Which of the Following Is an Example of a Preventive

question 34

Multiple Choice

Which of the following is an example of a preventive control?

• A) management level reviews of actual performance versus budgets
• B) credit manager following up on an exception report showing sales made to a customer who has exceeded his or her credit limit
• C) sales invoices are automatically priced using the information in the price master file
• D) a bank reconciliation

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Definitions:

Solver

A feature in software, such as Microsoft Excel, that performs optimization, finding the best solution to a problem given constraints.

Price/Demand Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, often used to understand the sensitivity of consumers to price changes.

Local Optimum Solution

A solution to an optimization problem that is better than or equal to all nearby solutions but not necessarily the best overall, or global, solution.

Nonlinear Optimization Models

Mathematical models where the objective function or any of the constraints are nonlinear, used for solving complex real-world problems.