Fixed costs should be ignored. Thus, the increase in sales revenue should be multiplied by the contribution margin ratio for each product line. The incremental promotion cost US $7,000) is subtracted from this amount to determine the marginal benefit of promoting each product line. Hence, Product Line 3 has an increased profit of US$1,120.

The company buys the goods in the three product lines directly from manufacturers' representatives. Each product line is directed by a manager whose salary is included in the administrative expenses. Administrative expenses are allocated to the three product lines equally because the administration is spread evenly among the three product lines.
Salaries represent payments to the workers in each product line and therefore are traceable costs of each product line. Advertising promotes the entire company rather than the individual product lines. As a result, the advertising is allocated to the three product lines in proportion to the sales revenue. Commissions are paid to the salespersons in each product line based on 2% of gross sales. Rent represents the cost of the retail store and warehouse under a lease agreement with 5 years remaining. The product lines share the retail and warehouse space, and the rent is allocated to the three product lines based on the square footage occupied by each of the product lines.

To prevent unauthorized wireless network access, the strongest control is to require access through a Virtual Private Network (VPN). A VPN encrypts data and ensures that only authorized users with proper credentials can connect securely.
* Encryption & Secure Communication: VPNs use strong encryption protocols (e.g., AES-256) to protect data from unauthorized access.
* Restricted Access Control: Users must authenticate through a secure VPN gateway, reducing the risk of unauthorized access.
* Compliance with IT Security Standards: VPNs are recommended by security frameworks such as NIST 800-53, ISO 27001, and CIS Critical Security Controls.
* Option B (Logging devices that access the network, including date, time, and user identity):
Logging is important for monitoring but does not prevent unauthorized access-it only records it after the fact.
* Option C (Tracking all mobile device physical locations and banning access from non-designated areas): Geofencing can help restrict access but is not as secure as a VPN, and attackers could spoof locations.
* Option D (Permitting only authorized IT personnel to have administrative control of mobile devices): While restricting administrative control is good practice, it does not prevent unauthorized users from connecting to the network.
* IIA's GTAG on IT Security & Cybersecurity Risks highlights VPNs as a critical security measure to prevent unauthorized access.
* ISO 27001 (Annex A.13) - Network Security Management recommends encrypting data transmissions to secure wireless network access.
* NIST 800-53 (SC-12, SC-13, SC-28) emphasizes using VPNs for secure remote and wireless network access.
Why Option A is Correct (VPN):Why Other Options Are Incorrect:IIA References:Thus, the most appropriate answer is A. Allowing access to the organization's network only through a virtual private network (VPN).

Game or decision) theory is a mathematical approach to decision making when confronted with an enemy or competitor. Games are classified according to the number of players and the algebraic sum of the payoffs. In a two-person game, if the payoff is given by the loser to the winner, the algebraic sum is zero and the game is called a zero-sum game. If it is possible for both players to profit, however, the game is a positive-sum game. Mathematical models have been developed to select optimal strategies for certain simple games.

A decentralized structure distributes decision-making authority across different business units, divisions, or geographical locations. While decentralization provides flexibility and autonomy, the primary risk is inconsistency in decision-making, as different units may develop their own policies, processes, and priorities that are not aligned with the organization's strategic goals.
* (A) Inability to adapt.
* Incorrect. Decentralization typically enhances adaptability, as individual units can quickly respond to local market conditions, customer needs, and emerging risks without waiting for corporate approval.
* (B) Greater costs of control function.
* Partially correct but not the primary risk. While decentralization may increase oversight costs (e.g., more auditors and compliance personnel), the primary issue is lack of uniform decision- making rather than costs alone.
* (C) Inconsistency in decision making. #
* Correct. When decision-making authority is spread across various units, inconsistencies arise in areas such as risk management, compliance, operational procedures, and resource allocation
. This can lead to conflicts, inefficiencies, and misalignment with corporate strategy.
* IIA Standard 2120 - Risk Management emphasizes the need for consistent risk oversight in all business units.
* IIA GTAG "Auditing the Control Environment" warns that inconsistent policies weaken internal controls and governance.
* (D) Lack of resilience.
* Incorrect. A decentralized structure often improves resilience because decision-making is spread out, reducing dependency on a central authority. This allows units to function independently if one area experiences disruption.
* IIA Standard 2120 - Risk Management
* IIA GTAG - "Auditing the Control Environment"
* COSO Framework - Internal Control Principles
Analysis of Answer Choices:IIA References:Thus, the correct answer is C, as decentralization introduces decision-making inconsistencies, affecting governance and strategic alignment.