Posted on

System documentation that is part of the program source code or is generated at compile time best defines Answer

Question: System documentation that is part of the program source code or is generated at compile time best defines: (Points : 5)

system documentation.        user documentation.        internal documentation.        external documentation.        embedded documentation.

 

Correct Answer : internal documentation

Posted on

Why would a corporation not want the project manager authorizing changes to his or her projects Answer

Why would a corporation not want the project manager authorizing changes to his or her projects?

Project Managers must go through a formal procedure to have changes made to a project scope or other changes, and the change control system which is the subset of the project configuration system. The stakeholders approve changes, and this is done through documented procedures that define how project deliverables and documentation will be controlled, changed, and approved. Stakeholders are responsible for reviewing, evaluating, approving, delaying, or rejecting changes to the project, with all decisions and recommendation being recorded.

The project Manager must make a request to expand or reduce the project scope, modify policies, processes, plans, or procedures, modify costs or budgets, or revise schedules. In the event a change is needed to proceed with a project, requests for a change will be made directly or indirectly, externally or internally initiated, legally or contractually mandated, or optional. The stakeholders’ honors documentations as regards to the PM’s request, which are processed and only approved change requests, are implemented.

http://www.wsdot.wa.gov/nr/rdonlyres/3dde6d10-c5fb-4d45-8386-4180ce905bd0/0/wsdotpmglossary.pdf

There have been several occurrences were management has taken initiation for change control within projects. This can occur due to constraints, lack of communication, but also because the customer requires certain objectives that acquire the use of external resources. Information assessed from stakeholders can imply that the PM may be informed and he or she may not have complete control over the change management control. This is determined depending on what the needs of the sponsor, organizational structure, and change management control for business policy consists of. By regularly measuring and monitoring the project, adopting proper change management control procedures, the project manager knows exactly what’s going on with the project at any given time. This is important because senior management could ask for status or information at any time. Being actively involved in measuring and controlling the project is extremely important to success of the project. Therefore, without this knowledge it is difficult to know where the project stands and measure success.

Senior Management may not allow the Project Manager to make changes because there may a few unknowns that the PM is aware of. The PM is aware of what the requirements are and what needs to be done, however, he or she may not have every single detail or information available to them. Making a change, they may unknowingly deviate the project from course and from what the Senior Management were expecting causing delays or rework. A proactive PM is great, but there must be checks and balances such as the PM asking for permission for a change through a formal process.

On a simple basis of having a 3rd party review decision making processes, it makes sense to have someone else authorize changes to a project other than the project manager. Like all checks and balances, it’s best practice to have someone not directly involved in the day-to-day to chime in on a change to the project so they can take a fresh look at things.

It really depends on their Authority on their project and their approval for spending. Some corporations may want to limit their spending and authority for changes to control the costs and have them report up to get approval. At my last organization I had a $ limit, but once they realized that it was not high enough I was able to get the change authority to perform my work on the projects. I have unlimited authority on my projects for change management. I am allowed to make changes to get the project complete. If the PM Matrix is strong, the PM should have the authority to make changes to the project to accomplish the work.

The Project Manager has many tasks and change management it one that is important. The PM may not be the one person in this case to make these changes as there may be a need to have a group of people to make the changes instead of just one person. A board in my opinion is the best solution so there are multiple people looking into the change. More than one opinion in a change is the best option to get a lot of ideas out there and a change forhte better. You would not want a project manager to authorize changes to their project as there would be no accountability in place. The project manager can just change the project to fit his/her needs. If they are behind, they could just extend the date, if they are running short on resource just hire some more. This would be so chaotic for an organization as there is no change control occuring. There are no checks and balances. The project manager is basically doing what they want, when they want, which does not benefit the project as a whole.

The big risk to the program is controlling the baseline. If the PM is able to make changes at will they might bury issues by moving the items that are behind schedule or they could put more money on accounts that are overrun. In my company the PM has authority to make changes – but the other stakeholders have to agree to the change as well. In addition, we have change management policy that attempt to manage inappropriate changes.

Posted on

What are some of the different types of sampling methods that are available to the auditor Answer

What are some of the different types of sampling methods that are available to the auditor? How does the auditor decide which method to use? How will the different methods affect the audit?

 

When performing audit, the auditor has the choice to go for statistical sampling or non-statistical sampling or both of them. Both sampling methods are efficient in providing the auditor with sufficient appropriate audit evidence about the financial statements and both audit sampling methods require that the auditor practice his judgment in planning and executing his plan and come out with the results. Sampling and non-sampling risks are applicable to both sampling methods. Non-statistical sampling may be as effective as statistical sampling and vice versa (Boynton, 2006).

In statistical sampling, the auditor may choose random sampling techniques, block sampling techniques, or systematic sampling techniques which all of them are a result of the use of the laws of probability that enable the auditor to control sampling risk. On the other hand, the auditor who uses non-statistical sampling must use professional judgment, derived basically from his/her own experience, to evaluate sampling risk (Boynton, 2006).

Statistical and non-statistical sampling methods do not affect audit and the auditor is using the same framework for planning and performing whatever sample used. Also, the choice of statistical or non-statistical sampling method does not affect the evidence achieved or the auditor response to the potential errors found in sample because, at the end, the auditor is practicing his/her professional judgment while either sampling (Boynton, 2006).

 

References

Boynton, W. C., & Johnson, R. N. (2006). Modern auditing: Assurance services and the integrity of financial reporting. (8th ed.). Hoboken, NJ: Wiley. Louwers, T., Ramsay, R., Sinason, D., & Stawser, J. R.. (2007). Auditing and assurance services. New York, NY: McGraw-Hill. Phoenix accountant (2012) retrieved from https://ecampus.phoenix.edu/content/eBookLibrary2/content/eReader.aspx

Posted on

Project control should always focus on the critical path. “Time is the scarcest resource and unless it is managed nothing else can be managed Answer

Project control should always focus on the critical path. “Time is the scarcest resource and unless it is managed nothing else can be managed.” (Drucker, P. F. [n.d.]. Time quotes. Retrieved January 8, 2009, from http://thinkexist.com/quotation/time_is_the_scarcest_resource_and_unless_it_is/218404.htmlDo you agree or disagree with the above statements? Why? Have you ever faced a situation in an organization where you worked previously or are working presently when you felt time is the scarcest resource? How did you handle the situation? Justify your answers with examples and reasoning.

One of the key activities that must be monitored across all projects, in some form, is time/schedule management. This is one of the fundamentals of the core ‘triple constraint’ (time, cost, quality/scope). Also, it is essential to define what tools and techniques one needs to deploy to effectively control the schedule. Critical path is the path with the longest duration through the network. If an activity on the path is delayed by certain duration, the project is delayed by the same amount of time. Project managers often put their best people on critical activities or on those activities that stand the greatest chance of becoming critical. They pay extra attention when doing risk assessment to identifying those risks that can impact the critical path, either directly or indirectly. The most obvious reason the critical path is important is because these are the activities that impact completion time. If the project schedule begins to slip, it’s the critical activities that project managers focus on to get back on schedule. Project managers assess the sensitivity of their network schedules to determine how much attention they should devote to managing the critical path.

When the critical path is known, it is possible to tightly manage the resources of the activities on the critical path so no mistakes are made that will result in delays. In addition, if for some reason the project must be expedited to meet an earlier date, it is possible to select those activities, or combination of activities, that will cost the least to shorten the project. Similarly, if the critical path is delayed and the time must be made up by shortening some activity or activities on the critical path to make up any negative slack, it is possible to identify the activities on the critical path that cost the least to shorten. If there are other paths with very little slack, it may be necessary to shorten activities on those paths also.

Another reason why the time could become scarcest resource in the project if there are some imposed deadline. Imposed deadlines are another reason for accelerating project completion. For example, the president of a software company remarks in a speech that new advanced software will be available in one year. Such statements too often become imposed project duration dates without any consideration of the problems or cost of meeting such a date. The project duration time is set while the project is in its “concept” phase before or without any detailed scheduling of all the activities in the project. Unfortunately, this practice almost always leads to a higher cost project than one that is planned using low-cost and detailed planning. In addition, quality is sometimes compromised to meet deadlines.

I have worked in my previous project where some unforeseen delays forced us to accelerate the project completion time. This was one such experience where the entire project team felt that we didn’t have enough time to complete the project deadline. We started focussing on the critical activities of the project to get back on schedule. We used the most common method for shortening project time i.e. to assign additional staff and equipment to activities. There are limits, however, as to how much speed can be gained by adding staff. Doubling the size of the workforce will not necessarily reduce completion time by half. Getting back on schedule usually requires compressing the time on some of the remaining critical activities. The additional costs of getting back on schedule need to be compared with the consequences of being late. This is especially true when time is a top priority.

 

Posted on

Discuss how the SEC has influence (if any) over the audit of Smackey Dog Foods, Inc. Answer

 

Smackey Dog Foods, Inc – Scenario Summary

Smackey is privately held.

Smackey Dog Foods, Inc. started in the kitchen of Sarah, Kim, and Jillian’s family home in the suburbs of Chicago.  The three sisters initially bought the ingredients for their natural dog food recipes from the local grocery store. They used their dogs and the neighborhood dogs as their taste testers.  Their dog food products were so good, the local kennels and veterinary offices were glad to distribute the sisters’ products to their customers.

Local demand increased significantly.  Local pet stores and small grocery stores discovered the products and became distributors.  The sisters moved the expanding business into a larger facility and hired a few more workers.  While their competitors’ sales were flat or declining, Smackey Dog Food, Inc.’s sales were on a vertical climb!

Sales were so good last year, that the sisters opened a boutique division named Best Boy Gourmet, specializing in freshly manufactured, one-serving packages meant for consumption no later than 3 days after production.  They sell this product at 3 times the cost of their other products and by special order only through their new website.  Demand is high, but waste has been an issue. Sarah is the president and general manager of the operation. Sarah has been very proactive in growing the business. She has met with her banker to discuss expanding the facilities and equipment with another $150,000 loan.  Their first loan for $150,000 was secured by the industrial size, food production equipment purchased with the loan. The banker now demands an audit of the corporate financial statements before releasing another loan to the company.  Sarah has offered to place the corporate account receivables up as collateral to secure the second loan.  Based on revenue projections by her sister Jillian’s sales team, Sarah believes that the company will not have trouble paying down the loan in a short period of time.

Kim manages the production operations.  She oversees the inventory, production, and shipment of dog food products.  The Best Boy Gourmet line has taken almost all of her attention lately.  The winter holidays are approaching and sales demand based on forecasts from the sales force are higher than ever.  Attaining fresh, raw ingredients is more difficult in the winter months.  If any of the fresh ingredients are delayed, production comes to a standstill. There has been significant inventory waste as a result.

Kim’s assistant, Henry, monitors the production and shipment of Smackey Dog Food’s regular line of product.  Henry takes pride in his work and is involved in every facet of the operation.  With only one other warehouse employee to help, Henry personally is involved in preparing and approving all inventory records.  Henry ensures that very little finished inventory sits in the warehouse.  However, the shipping dock always seems to be full of returned dog food that should be restocked.  When Kim asks him about it, Henry laughs and tells her that “first in first out” applies to dog food returns as well.  Kim smiles and just accepts that answer. Jillian is not very good at understanding accounting. The sisters placed Jillian in charge of sales.  She manages a sales team of 12 salesmen in Illinois, Indiana, and Wisconsin.  Her fear of flying and poor driving skills limit her ability to get around to the areas outside of Chicago. As a result, she has placed a lot of faith in her sales team.  The sales team complained last year that they did not like waiting for their commissions until after bookkeeping calculated the actual revenues.  In order to keep their spirits fired up, Jillian has her sales people project what their sales will be in the upcoming quarter and she pays commissions in advance on those projections.    The sales team loves her and Jillian loves their approval.  Jillian has noticed that the projections typically are off by 11% on average.

The employees of Smackey Dog Food, Inc. all own dogs. It was a hiring requirement on the job application. One employee was fired when it was discovered she never owned a dog when she was hired.  A lawsuit is pending by the fired employee.

At this time, the receivables represent 29% of the corporate assets.  The Chicago retail chain Pup Stores, Co. is Smackey Dog Food’s largest buyer.  They alone represent 31% of overall sales and usually pay within 30 days. However, Pup Stores is facing a major lawsuit from an animal rights group. The legal fees are eating into their cash reserves and they are facing some store closures. The accounts receivable aging indicates that 38% of the receivables are 30 days or less.  Twenty-two percent are 31-60 days.  Twenty-one percent of the receivables are 61-90 days old. Ten percent are 90-120 days. The remaining receivables are older than 120 days.  Sarah has not written off any of the receivables, nor will she.

Sales are projected to steadily grow at 16% next year if the company does not expand its facilities. With the expansion, sales are projected, rising 26%, with the most significant jump in the last quarter after expansion is completed and holiday sales pick up.

Your Role

You and your firm, Keller CPAs, have never audited a dog food manufacturer.  Although it is late in the year to be accepting a new calendar year-end audit, you need the work and have the time to devote to the audit before your 2-week ski vacation in February.

You begin the audit process just prior to year-end by sending your audit manager, Pete, and two audit staffers, Ben and Maureen, out to the client. They spend time assessing the client and planning the audit.

During the first month of field work after year end, Ben and Maureen note that the dog food bags piled high on the docks are marked “Returned.”  One employee is seen throwing bags of the premium Best Boy Gourmet dog food into the dumpster in the morning and pulling it out and throwing it into Henry’s car during the employee lunch hour.

Pete’s new best friend, Alan, was married to Smackey Dog Food, Inc.’s owner, Kim, 4 years ago. Alan is also good friends with the banker from whom Sarah is seeking the loan.  Pete is unaware of the relationship.  Pete has talked about some of the details of the audit to Alan over a few beers.

Posted on

Nick’s Enchiladas Incorporated has preferred stock outstanding that pays a dividend of $5 at the end of each year Answer

Nick’s Enchiladas Incorporated has preferred stock outstanding that pays a dividend of $5 at the end of each year. The preferred sells for $50 a share. What is the stock’s required rate of return?

 

Ans:

  

Stock’s required rate of return = Dps / Vps

 Stock’s required rate of return = 5/50 = 10 %

Posted on

Use the information below to prepare the bank reconciliation for EEE Electric for the month of September Answer

The bank account as a control device that helps to protect cash. One of the requirements is to conduct periodic bank statement reconciliations. Using the following data, complete the bank statement reconciliation. (Use the format shown on page 251 of your textbook.)

Use the information below to prepare the bank reconciliation for EEE Electric for the month of September.
•The bank statement indicated bank service charges of $63.
•Outstanding checks as of September 30 amounted to $1,405.
•Deposits in transit as of September 30 amounted to $2,769.
•The ending balance per the September bank statement is $40,653.
•EEE’s bookkeeper mistakenly recorded a $1,610 cash disbursement as $1,160 for Office Supplies on check #2402.
•The bank mistakenly recorded a deposit of $2,800 as $280 on February 17.
•The bank made an EFT payment on behalf of the company for Insurance for $3,200.
•Bank collected rent of $3,000 and a note, for $16,450, including interest of $450.
•The ending cash balance per the books for September before any adjustments was 28,800.

 

To get the answer for the above tutorial, please click on the below purchase link –

 

Posted on

Markland Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment Answer

S 7.17
Markland Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors have presented proposals. The fixed costs for proposal A are $50,000, and for proposal B, $70,000. The variable cost for A is $12.00, and for B, $10.00. The revenue generated by each unit is $20.00.

S 7.18
Using the data in Problem S7.17:
a) What is the break-even point in dollars for proposal A if you add $10,000 installation to the fixed cost?
b) What is the break-even point in dollars for proposal B if you add $10,000 installation to the fixed cost?

S 7.30
What is the net present value of an investment that costs $75,000 and has a salvage value of $45,000? The annual profit from the investment is $15,000 each year for 5 years. The cost of capital at this risk level is 12%.
S 7.31
The initial cost of an investment is $65,000 and the cost of capital is 10%. The return is $16,000 per year for 8 years. What is the net present value?

 

To get the answer for the above tutorial, please click on the below purchase link:

 

Posted on

You are operating a firm in a perfectly competitive market. In the short run, you have fixed costs of $30 Answer

You are operating a firm in a perfectly competitive market.  In the short run, you have fixed costs of $30.  Your variable costs are given in the following table:

Q TVC Tc MC
0 0 30  
1 70 100 70
2 120 150 50
3 150 180 30
4 190 220 40
5 270 300 80
6 360 390 90

Complete the following table:

Market Price Profit maximizing level of output Profit
$48  4 48*4 -220= -28
$52  4  52*4-220=-12
$75  4 4*75-220=80
$85  6 6*85-390=120

 

2.

(10 Points) A monopolist faces a demand curve given by:

P = 105 – 3Q, where P is the price of the good and Q is the quantity demanded.  The marginal cost of production is constant and is equal to $15.  There are no fixed costs of production.

  1. A) (2 points) What quantity should the monopolist produce in order to maximize profit?

Equate Mr with MC

TR= 105Q-3Q^2

Mr=105-6Q

105-6q=15

Q=90/6= 15

  1. B) (2 points) What price should the monopolist charge in order to maximize profit?

P= 105-3*15 = 60

  1. C) (2 points) How much profit will the monopolist make?

Profits= Tr-Tc = 60*15 -15*10= 750

  1. D) (2 points) What is the deadweight loss created by this monopoly (hint: compare the monopoly outcome with the perfectly competitive outcome).

In perfect competition P= MC

105-3Q=15

Q= 90/3= 30

Deadweight loss= ½ *( 30-15)*( 60-10)= 375

  1. E) (2 points) If the market were perfectly competitive, what quantity would be produced?

Q= 30 as shown above

 

 

3.

(6 Points) List the three conditions that must be met in order for a firm to successfully engage in price discrimination.

  • Seller must be a monopolist/ a firm with sufficient market power.
  • The different markets must be segregated so that cross selling is not possible
  • The consumers in different markets must have different demand elasticities. (12 Points) Suppose a competitive firm can sell its output for $6 per unit.  The following table gives the firm’s short run production function.
  • 4.
Labor Output Marginal output MRP = Mp*P
0 0    
1 20 20 20*6=120
2 50 30 180
3 90 40 240
4 110 20 120
5 120 10 60
6 124 4 24

In the table below, you will determine several points on the firm’s demand curve for labor.  To do this, you must determine how many workers the firm should hire for different values of the wage rate in order to maximize profit.  Complete the table below:

The rule is to hire till MRP > wage rate. When wage exceeds MRP we must not hire the last worker.

Take w= 80, MRP= 60 with 5 workers and 120 with 4 workers. The 5th worker will not be taken as MRP < wage. So at q= 80 only 4 are taken.

Wage Rate Per Worker Quantity Demanded of Workers
$50  5
$80  4
$100  4
$150  3

 

Posted on

Alfred Thayer Mahan was considered as the father of sea power theory and a champion of the maritime combat theories Answer

Alfred Thayer Mahan was considered as the father of sea power theory and a champion of the maritime combat theories Answer

 

Alfred Thayer Mahan was considered as the father of sea power theory and a champion of the maritime combat theories. The theories depicted the concentration of the felt of nation to seek and destroy ant enemy fleet in a decisive naval battle. The Mahan advocated that the quickest way to win over the enemy is through command over the sea and this one of the prime objectives. According to Mahan’s theory he had put a premium with the acquisition of the vital centre which the commercial shipping will pass, thus cutting of the resources and wealth of the enemy.

The control over the sea line of communication have been a decisive factor in the winning access to the maritime strategies of the foe. The military planners focussed on obtaining of information and also the contingency rules for their actions. The power of sea power lies on the acquisition of the sea communication and information which can be achieved through the exchange of messages.

Mahan had placed importance on the geopolitical importance and also the disadvantages which had proved a great point in the assessment of the navy battles. Though some of the experts like Corbett refute these theories as it shows that the navy if they follow Mahan’s theory will fight nonstop battles for the decisive victory. The enemy in this case will never leave their port and this will entail that the navy will lose their valuable resources and time. This will also make them vulnerable as they will weaken their crew and also increase the wear and tear of their ships.

 

References:

Cropsey, S., &Milikh, A. (2012). Mahan’s Naval Strategy. World Affairs174(6), 85-92.

Mahan, A. T. (2010). The influence of sea power upon history 1660-1783 (Vol. 116). BoD–Books on Demand.

Sumida, J. T. (1999). Inventing grand strategy and teaching command: the classic works of Alfred Thayer Mahan reconsidered. Woodrow Wilson Center Press.