For a multinational organization, which of the following is a disadvantage of an ethnocentric staffing policy?
1) It significantly raises compensation and staffing costs.
2) It produces resentment among the organization's employees in host countries.
3) It limits career mobility for parent-country nationals.
4) It can lead to cultural myopia.

• A.2 and 3 only
• B.1 and 4 only
• C.1, 2, and 4 only
• D.1, 2, and 3 only

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When management uses the absorption costing approach, fixed manufacturing overhead costs are classified as which of the following types of costs?

• A.Direct product costs
• B.Indirect product costs
• C.Indirect period costs.
• D.Direct period costs

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Which of the following is the primary benefit of including end users in the system development process?

• A.Improved integrity of programs and processing.
• B.Enhanced ongoing maintenance of the system.
• C.Reduced need for unexpected software changes.
• D.Greater accuracy of the testing phase.

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An organization is considering outsourcing its IT services, and the internal auditor is assessing the related risks. The auditor grouped the related risks into three categories:
Risks specific to the organization itself.
Risks specific to the service provider.
Risks shared by both the organization and the service provider.
Which of the following risks should the auditor classify as specific to the service provider?

• A.Inadequate staffing.
• B.Violation of contractual terms.
• C.Loss of data privacy.
• D.Unexpected increases in outsourcing costs.

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Which of the following describes the result if an organization records merchandise as a purchase, but fails to include it in the closing inventory count?

• A.The cost of goods sold for the period will be overstated.
• B.The cost of goods sold for the period will be understated.
• C.The net income for the period will be understated.
• D.There will be no effect on the cost of goods sold or the net income for the period.

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