Independent-demand items are those items for which demand is influenced by market conditions and is not related to inventory decisions for any other items held in stock

If the CAE concludes that management has accepted a level of risk that may be unacceptable to the organization, what should the CAE do?

a) Resign as the internal audit function has lost its independence. b) Discuss the matter with senior management and if not resolved communicate the matter to the audit committee. c) Accept management's decision as it is their responsibility to determine the risk response. d) Take the matter to the organizations external auditor.

The approach by a firm to give away a base product and make money on the complementary products required to make the base product useful is called:

a. installed base pricing b. no alternative pricing c. captive product pricing d. monopolistic pricing e. predatory pricing