Netflix experienced some membership turbulence in 2016 as a price increase was phased in for its US subscribers. In May 2014, Netflix announced that the price of its standard subscription service would increase from $8 to $9. However, established customers were allowed to stay at the $7.99 price for two years. In 2015, Netflix increased the standard price to $9.99. As a result of the pricing plan and the deferred price increase, in May, 2016, the standard pricing plan for long time customers of Netflix increased from $7.99per month to $9.99per month. Netflix began notifying customers in April that the price increase would become effective in the second quarter. Netflix was trying to implement price increases more slowly after a 2011 increase led to negative publicity and a customer backlash. In that case, Netflix separated its streaming and DVD services, and charged separately for both services. However, regardless of the implementation of the price increase, the higher monthly prices seem to have impacted the growth of membership among US subscribers. In the two quarters before the price increase, Netflix added net membership of 1.6 million and 2.2 million members. By contrast, the number of members added in Q2 was only 160,000, and in Q3 only 400,000. The Q2 growth in US subscribers was the lowest since Netflix began reporting those numbers in 2012.

Netflix Price Increase Hurts Membership

U.S. Streaming (millions) Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016

Revenue 1026 1064 1106 1161 1208 1304

Contribution Profit 340 344 379 413 414 475

Contribution Margin 33.1% 32.3% 34.3% 35.6% 34.3% 36.4%

Paid Memberships 41.1 42.1 43.4 45.7 46.0 46.5   

Total Memberships 42.3 43.2 44.7 47.0 47.1 47.5

NET Additions 0.90 0.88 1.56 2.23 0.16 0.40

Monthly Revenue Per

Paid Member $ 8.33 $ 8.43 $ 8.49 $ 8.47 $ 8.75 $ 9.40    

Percentage change Rev. 3.7% 3.9% 5.0% 4.0% 7.9%

Percentage change 2.5% 3.2% 5.3% 0.6% 0.9%

Membership

Source: Netflix 10Q Q3, 2016

According to a MarketWatch article1on the price increase:Netflix said Monday that customers who learned in April that the price was about to increase had begun canceling their subscriptions, leading to unexpected “churn.” Netflix did not flat-out say inits letter to investorsthat the price increase led to higher churn among subscribers, however, instead saying it coincided with “press coverage” of the rate hike and that subscribers misunderstood “the news as an impending new price increase rather than the completion of two years of grandfathering.”The stock market reacted to news of Netflix price increase as well. The stock closed at $102.23 as of March 31, 2016. After the release of second quarter earnings in July, the stock price had fallen to $85.84 per share, a decline of 16%. This decline wiped out almost $7 billion of shareholder value during this period. Most of this decline was immediately following the release of the second quarter numbers.With competition increasing in for streaming services, especially with the growth of Amazon Prime Video and Hulu, the decline in membership growth could be a troubling sign.

1.Use the information on the change in membership, to estimate the own price elasticity for Netflix service.

2.What impact would this price change have on revenue and profits.

3.What concerns do you have regarding the reliability of your elasticity estimate?

4.What information / data would make your analysis better?

As a manager of a fast food franchise, Franklin Hinton was concerned about the media reports he had been listening to about worker demands for wage increases that might soon become an economic reality. Even though Franklin’s store was considered to be successful on every financial measure, doubling wages, without a doubt, would create a significant increase on menu prices which would result in financial disaster. Fast food employees in many parts of the country were picketing and getting lots of press to get their hourly wages significantly raised.

If Franklin was faced to raise menu prices to compensate for the increase in employee wages, he wondered how much customers would be willing to pay and whether his competition would follow with similar price increases. Franklin prided himself on hiring high school and college students from the local area and giving them a chance to learn valuable job skills. In recent years he had hired employees with developmental disabilities and some senior citizens who were having a hard time finding work. Some of these workers had stayed with him for years, and some had moved up into supervisory positions. If he was forced to pay more, would it still make sense to hire workers who had no previous experience or those who may take longer to train? His entry-level workers were currently making at least a dollar an hour above the federal minimum wage and any significant increase above that, if menu prices were not raised, would have to be made up through reduced hours or reduction in the number of employees.

More troubling was the thought of being forced to pay a higher minimum wage, which would also have an impact on supervisory salaries. Then there was the potential of increases in health care costs. Although Franklin was sure that his employees trusted him, some of the fast food restaurants in the area had been upset with their employees wanting to join a union. There was also the potential for losing business and getting unwanted negative publicity as many students at the local university seemed to always be willing to join in any type of social or political protest.

Franklin knew that he needed to plan and organize for the future as his current business model provided a comfortable living at a 9 percent profit margin for the owner, but all of that could change. He knew that outside groups would promise his employees more money, better benefits, and better working conditions, even though they often could not deliver on that promise. Franklin needed to plan and organize for the future success of his business and employees.

(This critical incident developed by Roy Cook and Ed Leonard for this edition of Supervision.)

Questions

1. What external forces could impact the future of Franklin Hinton’s fast food business?
2. Franklin needs a plan for future success. Define planning as it relates to his business. How will an effective plan help him, and his employees be more effective in providing quality service to customers?
3. Regardless of the situation, employees must understand fully the mission and vision of the company. What do you suggest that Franklin might do to help his employees be the best they can be?
4. In your opinion, if the minimum wage in your state is increased to $10, $12, or $15 an hour, what impact will it have on the fast food industry? Will an increase in the minimum wage have an impact on customer service or quality of product? Discuss.
5. What should Franklin do to prepare for the possibility of a union attempt to organize his employees?
6. If you were Franklin, how would you deal with the uncertainties that could impact the future success of his business and employees?

Marketing in Action Case Real Choices at American Express What do Robert DeNiro, Ellen DeGeneres, Tiger Woods, Kate Winslet, and Laird Hamilton have in common? Let’s see, Robert DeNiro is one of the greatest living actors; Ellen DeGeneres is a famous comedienne; Tiger Woods is arguably the best golfer ever; Kate Winslet is a multiple Academy Award nominee; and Laird Hamilton is perhaps the greatest surfer who ever lived. However, being famous and best in their fields are not the only things these folks have in common. They also all carry the American Express credit card and have appeared in television or print commercials to promote the card in the company’s “My Life, My Card” campaign. The fast pace of today’s busy lifestyles and the rapid changes in information technology mean that, more than ever, companies like American Express have to rely on the familiar faces of celebrities to get its messages across. In late 2004, American Express started to feature famous and recognizable people as attractive spokespersons in the

“My Life, My Card” advertising campaign in an attempt to capture the attention of current and potential consumers. Each of the AMEX ads in- cluded brief biographical information on the celebrity such as where they live, profession, greatest triumphs or greatest dis- appointments, and basic philosophy on life. The final point of each ad showed how the American Express card helps enable individuals to pursue what is important to them. American Ex- press sought to communicate to its current and potential cus- tomers that they are just like these celebrities—simply trying to live life at its best. So, the slogan of “My Life, My Card” was perfect for the ad campaign. Consumers loved the ads. Unfortunately for American Express, its “My Life, My Card” advertising campaign had some serious competition. Visa had been running ads for some time with the slogan of “Life takes Visa,” which is a clever variation on Amex’s campaign theme. American Express’s other main competitor, MasterCard, was us- ing its “Priceless” theme commercials that are aimed at encour- aging customers to use the card to create priceless moments. In the end, however, the “My Life, My Card” campaign, while well-liked, really wasn’t working. Measures of customer loyalty showed that American Express was first in its product category in 1997, but by 2007, the American Express card was fifth, trailing Discover, Capital One, Visa, and MasterCard. So in 2007, American Express replaced its “My Life, My Card” ads with a campaign that that presented a productori- ented approach rather than the general image-oriented ap- proach. New ads asked consumers the question, “Are you a cardmember?” Historically, American Express has not switched campaigns quickly. The “Do you know me?” campaign ran from 1974 to 1987 and is still a well-known advertising saying. “Membership has its privileges” was used from 1987 to 1996, and the “Do More” campaign ran from 1996 to 2004. With only three cam- paigns in thirty years, how could consumers respond to this quick change of focus? Was American Express risking confusing consumers about American Express’s positioning? And what if the new “Are you a cardmember?” campaign didn’t improve loyalty ratings. Should American Express move quickly to de- velop still another new campaign or stick with this one?

Answer the question?

1. What is the decision facing American Express?
2. What factors are important in understanding this decision situation?
3. What are the alternatives?
4. What decision(s) do you recommend?
5. What are some ways to implement your recommendation?

How long did real cowboys live? One answer may be found in the book The Last Cowboys by Connie Brooks (University of New Mexico Press). This delightful book presents a thoughtful sociological study of cowboys in West Texas and Southeastern New Mexico around the year 1890. A sample of 32 cowboys gave the following years of longevity: 58 52 68 86 72 66 97 89 84 91 91 92 66 68 87 86 73 61 70 75 72 73 85 84 90 57 77 76 84 93 58 47 (a) Make a stem-and-leaf display for these data. (Use the tens digit as the stem and the ones digit as the leaf. Enter numbers from smallest to largest separated by spaces. Enter NONE for stems with no values.) Longevity of Cowboys 4 5 6 7 8 9 7 2788 16688 02233567 44456679 011237 (b) Consider the following quote from Baron von Richthofen in his Cattle Raising on the Plains of North America: "Cowboys are to be found among the sons of the best families. The truth is probably that most were not a drunken, gambling lot, quick to draw and fire their pistols." Does the data distribution of longevity lend credence to this quote? No, these cowboys did not live long lives, as evidenced by the high frequency of leaves for stems 4 and 5 (i.e., 40- and 50-year-olds). Sort of, these cowboys lived somewhat long lives, as evidenced by the high frequency of leaves for stems 5 and 6 (i.e., 50- and 60-year-olds). Yes, these cowboys certainly lived long lives, as evidenced by the high frequency of leaves for stems 7, 8, and 9 (i.e., 70-, 80-, and 90-year-olds). 6.–/2.85 points BBUnderStat12 2.1.017. Ask Your Teacher My Notes Question Part Points Certain kinds of tumors tend to recur. The following data represent the lengths of time, in months, for a tumor to recur after chemotherapy (Reference: D.P. Byar, Journal of Urology, Vol. 10, pp. 556-561). 19 18 17 1 21 22 54 46 25 49 50 1 59 39 43 39 5 9 38 18 14 45 54 59 46 50 29 12 19 36 38 40 43 41 10 50 41 25 19 39 27 20 For this problem, use five classes. (a) Find the class width. 12 (b) Make a frequency table showing class limits, class boundaries, midpoints, frequencies, relative frequencies, and cumulative frequencies. (Give relative frequencies to 2 decimal places.) Class Limits Class Boundaries Midpoint Frequency Relative Frequency Cumulative Frequency 1 − 12 13 − 24 25 − 36 37 − 48 49 − 60 0.5 − 12.5 12.5 − 24.5 24.5 − 36.5 36.5 − 48.5 48.5 − 60.5 6.5 18.5 30.5 42.5 54.5 6 10 5 13 8 0.14 0.24 0.12 0.31 0.19 6 10 21 34 42 (c) Draw a histogram. Maple Generated Plot Maple Generated Plot Maple Generated Plot Maple Generated Plot (d) Draw a relative-frequency histogram. Maple Generated Plot Maple Generated Plot Maple Generated Plot Maple Generated Plot (e) Categorize the basic distribution shape. uniform mound-shaped symmetrical bimodal skewed left skewed right

Write a program that uses a structure to store the following data:

(Remember to use proper formatting and code documentation)

The program should ask the user how many students there are and should then dynamically allocate an array of structures.

The Student struct includes a fixed size scores array to store a list of four test scores for a group of students .

After the array of struct has been dynamically allocated, the program should ask for the name, ID number and four test scores for each student. The average test score should be calculated and stored in the average member of each structure.

The course grade should be computed on the basis of the following grading scale:

The course grade should then be stored in the Grade member of each structure.

Once all this data is calculated, a table should be displayed on the screen listing each student's name, ID number, average test score, and course grade.

Input Validation: Be sure all the data for each student is entered. Do not accept negative numbers for any test score.

Simple Screen Output

How many students? 3

Student name: Sandy Shell
ID Number: 12345
        Test # 1: 100
        Test # 2: 56
        Test # 3: 78
        Test # 4: 66
Student name: Timothy Moriarty
ID Number: 23456
        Test # 1: 90
        Test # 2: 78
        Test # 3: 45
        Test # 4: 56
Student name: Joice Smith
ID Number: 54321
        Test # 1: 100
        Test # 2: 98
        Test # 3: 67
        Test # 4: 75

===========================
Course Grade Report
===========================
Student name: Sandy Shell
ID number: 12345
Average test score: 75.0
Grade: C

Student name: Timothy Moriarty
ID number: 23456
Average test score: 67.2
Grade: D

Student name: Joice Smith
ID number: 54321
Average test score: 85.0
Grade: B


Process returned 0 (0x0)   execution time : 94.219 s
Press any key to continue.

___________________________________________________________________________________________

Please make sure to declare the global constant and your struct above any function prototypes and include appropriate function documentation as needed.

Here is a sample of function prototypes that you may consider implementing...

// Function prototypes
Student *initArrays(int); 
void getInfo(Student [], int);
void showInfo(Student [], int);

You may use pointers or constant reference parameters when passing the structure to the functions mentioned above.

*EXTRA CREDIT COMPONENT FOR ASSIGNMENT#7 (5 points) - Select only one and insert as a multiline comment in your source code submitted.

1. How would you modify the program that you wrote for Programming Challenge 7a (monthly budget) so it defines an enumerated data type with enumerators for the months (JANUARY, FEBRUARY, so on). Provide a code snippet on how the program may use the enumerated type to step through each months expense and budget comparison for a full year.

or

2. How would you modify the program that you wrote for Programming Challenge 7b (course grades) so it defines struct member scores as a pointer to an array of test scores. What additional program statements will be needed so that each structure's score member should point to a dynamically allocated array that will hold the test scores.

Interpret or write a review about the article below using your own words. It is for presentation, the script should be for a 10-minute speech.

195,000 jobs vanish: Pandemic starts to suffocate job market

The COVID-19 pandemic's impact on the domestic job market has come to the fore.
Data from Statistics Korea showed Friday that the number of employed people stood at 26.6
million in March, down 195,000 from the same month a year earlier
This was the first year-on-year decline since January 2010 and the sharpest decrease since May
2009, when the world was suffering difficulties from the Global Financial Crisis.
The number of temporary layoffs ― categorized as employed in the statistics ― hit a record-high
of 1.6 million in March, up 1.26 million from a year earlier, as domestic air carriers, travel
agencies and duty-free shops have imposed out massive unpaid leave during the pandemic.
Although temporarily laid-off workers tend to return to their workplaces, they could become
unemployed or economically inactive if the situation worsens.
The statistics agency said the number of economically inactive people reached 16.9 million in
March, a 516,000 year-on-year increase.
Among them, the number of people who gave up on getting jobs was 582,000, up 44,000.
The number of those who had no plan to look for jobs ― regarded as de facto jobless ― also
reached a record-high of 2.36 million, a 366,000 increase from the previous year.
According to the Ministry of Economy and Finance, the decline in the number of employed
people was especially significant in the services industry which lost 294,000 jobs ― the steepest
since September 1998, when Korea was hit by the Asian Financial Crisis.
"Affected by the falling number of foreign tourists and social distancing, the number of people
employed in lodgings, restaurants, and wholesale and retail businesses dropped sharply," the
finance ministry said in a press release.
"The delayed school opening and cram school shutdowns sharpened the decrease in the number
of employees in the educational services sector."
The number of those employed in the manufacturing industry also dropped after a temporary
increase in January and February.
The construction sector has continued a downward trend because of falling housing demand.
By status, the numbers of temporary and daily workers diminished by 420,000 and 173,000,
respectively.
The number of self-employed who hired staff declined by 195,000, while the number of those
who did not hire staff jumped by 124,000.
Although the number of the unemployed dropped 17,000 year-on-year to 1.18 million in March,
the finance ministry attributed this to the slow labor supply caused by the postponement of
recruitment amid growing concerns over the pandemic.

Considering the increasing corporate bankruptcies here and the global labor market collapse, the
job crisis is expected to worsen.
Supreme Court data submitted to Rep. Chae Yi-bai of the minor opposition Party for People's
Livelihoods showed 101 corporations nationwide applied for bankruptcy in March, up 53 percent
from a year earlier.
Meanwhile, in the United States, 22 million people have filed jobless claims over the past four
weeks, according to the country's Department of Labor.
Against this backdrop, economic experts called for additional government measures to cushion
the coronavirus impact on the job market.
"If the government refuses to give enough financial support to liquidity-crunched businesses,
temporarily laid-off workers will eventually lose their jobs permanently, having a negative impact
on the entire economy," Yonsei University economics professor Sung Tae-Yoon said.
In response, Deputy Prime Minister and Finance Minister Hong Nam-ki said the government will
announce measures to stabilize the job market early next week.

2. Begin by defining the data type Point that has two coordinate members x and y. Specifically, Point will be implemented as a structure; define operators as needed to satisfy problem requirements.

b, prompt the user to input several (x,y) pairs. As the data is entered, store it in a vector of Points called orginal_points. Input is terminated with the EOF character (differs by OS type). To be clear, I am asking you to define an input stream operator to read the point format: (x,y). As an example, the input of (5,6) is the correct input format for a point. While the I/O format includes the ‘(‘, ‘,’, and ‘)’ characters, the internal storage contains only the x and y values. Please Note -- I am expecting a robust, user-friendly way to ensure Points are entered correctly and in a valid format. A simple termination of the program is not acceptable here -- If I’ve entered a number of valid points, don’t discard them -- recover from the error so that input can continue (if possible) and if input cannot continue, ensure that the program proceeds to save the points I have entered. Also important -- this input stream operator needs to work with standard input (cin) and formatted (text) file input streams.

3. Print the data in original_points to the screen so we can see what it looks like. Create an output stream operator for this that works with both cout and output file streams.

4. Open an ofstream and write each Point to a file named mydata.txt, using the operator you created in #3 above. Be sure to include the Points in the correct format, one Point per line. Explicitly close the file. Next, inspect the file. It should have the same contents as what you printed on the screen. Does it?

5. Open the file and, using the same input logic that you created in b, read in the Point data and print the results to the screen. (This is to demonstrate that your input operator is flexible to be used with multiple stream types. Since the data in the file should conform perfectly to the required format, your input checking should run smoothly here…) it's c++ language and Input error handling -- Points data structure

   #include <iostream>
   #include <fstream>
   #include <vector>
   using namespace std;
   
   struct Point{
       int x, y;
       bool operator==(const Point& p2) {
           return this->x == p2.x and this->y == p2.y;
       }
       bool operator!=(const Point& p2) {
           return this->x != p2.x or this->y != p2.y;
       }
       friend ostream &operator<<( ostream &out, const Point &P ) { 
            out << "(" << P.x << ", " << P.y << ")";
            return out;
       }
   
       friend istream &operator>>( istream  &in, Point &P ) { 
           char d1, d2, d3;
           // input format: (1, 2)
           in >> d1 >> P.x >> d2 >> P.y >> d3;
           return in;
       }
   };
   
   int main()
   {
       vector<Point> original_points;
       cout << "Enter points :\n";
       Point P;
       while( cin >> P )
       {
           original_points.push_back(P);
       }
   
       ofstream out("mydata.txt");
       cout << "You entered the points:\n";
       for(Point p: original_points)
       {
           cout << p << '\n';
           out << p << '\n';
       }
       out.close();
       //pause
       cin.get();
       char ch;
       cout << "Press enter to continue: ";
       getchar();
   
       ifstream in("mydata.txt");
       vector<Point> processed_points;
       while( in >> P )
       {
           processed_points.push_back(P);
       }
       int n = original_points.size();
       for(int i=0; i<n; i++)
       {
           if(original_points[i] == processed_points[i])
           {
               cout << "Points at index " << i << " are same\n" 
                    << original_points[i] << " "
                    << processed_points[i] << '\n';
           }
           if(original_points[i] != processed_points[i])
           {
               cout << "Points at index " << i << " are not same\n"
                    << original_points[i] << " "
                    << processed_points[i] << '\n';
           }
       }
   } depend on this code write error handling code

Computing Assignment 1
You must upload both your code (to Assignment 1 scripts/codes) and your report (to Assignment
1 computing report). The assignment is due at 11:00pm. I have set the due time in Canvas to
11:05pm and if Canvas indicates that you submitted late, you will be given 0 on the assignment.
Your computing report must be exactly 1 page. There will be a penalty given if your report is
longer than one page.
• Please read the Guidelines for Assignments first.
• Keep in mind that Canvas discussions are open forums.
• Acknowledge any collaborations and assistance from colleagues/TAs/instructor.
Computing Assignment { Floating Point Arithmetic
Required submission: 1 page PDF document and Matlab scripts uploaded to Canvas.
1. Part 1 - warmup
Use Matlab and issue the following two commands on the command line: sin(0); sin(π). State
your answer and explain the answer you see. This should be done in one or two sentences at
the beginning of your report.
2. Part 2
Let 8 ≤ x ≤ 10 be an arbitrary number and n a nonnegative integer. In exact arithmetic, the
following computation leaves x unchanged:
1 for i=1:n

2 x=5 log(x);

3 end

4

5 for i=1:n

6 x=exp(x/5.0);

7 end

However, in finite-precision arithmetic the results may be dramatically different for large n.
The purpose of this assignment is to investigate the output of this computation in Matlab for
various values of n and for x in the range 8 ≤ x ≤ 10.
Your conclusions should be explained in a one-page report. Your report must include the
following:
(a) Representative plots of the output as a function of x, with each plot corresponding to a
different value of n.
(b) A discussion of the smallest value of n after which the result of the finite-precision
computation begins to differ from exact arithmetic computation.
1
(c) A discussion of the limiting behaviour for large n.
(d) A brief explanation as to why computing in floating point arithmetic leads to the results
you have found.
Partial code for this assignment can be found in the file FloatPt.m on Canvas. I suggest
using this as your starting point. If you have questions about Matlab or other aspects of
the assignment or course, then I strongly encourage you to attend the tutorials and drop-in
workshops.

----------------Codes given----------------------

% MACM 316 - Homework 1
% Floating Point Arithmetic with logarithm function
% Description: Performs n-fold logarithm followed by n-fold exponentiation
% File name: FloatPt_log.m

clear
%format long; %this changes the number of decimal digits that DISPLAY
n=30;
st=0.001; % Define a stepsize
x=8:st:10; % x is a row vector of numbers between 1.3 and 2.3 of increments st
y=x;

for i=1:n
    y=5*log(y);
end
%y(1) %this is how you print the 1st element of y to the screen
%y(11)
%y(101)
%y(1001)
%pause %this stops your program until you press a key
for i=1:n
    y=exp(y/5.0); 
end
%y(1)
%y(11)
%y(101)
%y(1001)
% Plot the output y versus the input x
plot(x,y) %you can change the title and axis labels in this manner
title(['Output of the Computation with n = ' num2str(n)],'fontsize',14)
xlabel(['Input x'],'fontsize',12)
ylabel(['Output y'],'fontsize',12)

Patient Portal

Kaiser Permanente is an integrated health delivery system that serves more than eight million members in nine states and the District of Columbia. In the late 1990s, Kaiser Permanente introduced an Internet patient portal, Kaiser Permanente Online (also known as KP Online). Members can use KP Online to request appointments, request prescription refills, obtain health care service information, seek clinical advice, and participate in patient forums.

Information Systems Challenge

In August, there was a serious breach in the security of the KP Online pharmacy refill application. Programmers wrote a flawed script that actually concatenated over eight hundred individual e-mail messages containing individually identifiable patient information, instead of separating them as intended. As a result, nineteen members received e-mail messages with private information about multiple other members. Kaiser became aware of the problem when two members notified the organization that they had received the concatenated e-mail messages. Kaiser leadership considered this incident a significant breach of confidentiality and security. The organization immediately took steps to investigate and to offer apologies to those affected.

On the same day the first member notified Kaiser about receiving the problem e-mail, a crisis team was formed. The crisis team began a root cause analysis and a mitigation assessment process. Three days later Kaiser began notifying its members and issued a press release.

The investigation of the cause of the breach uncovered issues at the technical, individual, group, and organizational levels. At the technical level, Kaiser was using new web-based tools, applications, and processes. The pharmacy module had been evaluated in a test environment that was not equivalent to the production environment. At the individual level, two programmers, one from the e-mail group and one from the development group, working together for the first time in a new environment and working under intense pressure to quickly fix a serious problem, failed to adequately test code they produced as a patch for the pharmacy application. Three groups within Kaiser had responsibilities for KP Online: operations, e-mail, and development. Traditionally these groups worked independently and had distinct missions and organizational cultures. The breach revealed the differences in the way groups approached priorities. For example, the development group often let meeting deadlines dictate priorities. At the organizational level, Kaiser IT had a very complex organizational structure, leading to what Collmann and Cooper (2007, p. 239) call “compartmentalized sensemaking.” Each IT group “developed highly localized definitions of a situation, which created the possibility for failure when integrated into a common infrastructure.”

Discussion Prompt Answer the following questions in 2-4 sentences

1. How serious was this e-mail security breach? Why did the Kaiser Permanente leadership react so quickly to mitigate the possible damage done by the breach?
2. Assume that you were appointed as the administrative member of the crisis team created the day the breach was uncovered. After the initial apologies, what recommendations would you make for investigating the root cause(s) of the breach? Outline your suggested investigative steps.
3. How likely do you think future security breaches would be if Kaiser Permanente did not take steps to resolve the underlying group and organizational issues? Why?
4. What role should the administrative leadership of Kaiser Permanente take in ensuring that KP Online is secure? Apart from security and HIPAA training for all personnel, what steps can be taken at the organizational level to improve the security of KP Online?

QUESTION 1

1. When the direct write-off method of recognizing bad debt expense used, which of the following accounts would NOT be used?

   		Bad Debt Expense
   		Accounts Receivable
   		Allowance for Bad Debts
   		All of the above are used in the direct write-off method

1 points   

QUESTION 2

1. When the allowance method of recognizing bad debt expense is used, the entries at the time of collection a a small account previously off would:

   		Increase net income
   		Increase Allowance for Bad Debts
   		Decrease net income
   		Decrease Allowance for Bad Debts

1 points   

QUESTION 3

1. Deuce Company uses the allowance method to estimate the losses form uncollectible receivables. Net sales for the year are $120,000 and the company estimates its bad debts as 1 percent of net sales. If there is already a $1,200 debit balance in Allowance for Bad Debts, how should be recorded as Bad Debt Expense?

   		$1,200
   		$2,400
   		$24,000
   		No entry is required

1 points   

QUESTION 4

1. Following are the account balances from the December 31 trial balance of Hark Company. If 10% of the Accounts Receivable is estimated to be uncollectible, the entry to record the estimate of bad debts would include a debit to Bad Debt Expense for:

   	DB
   Accounts Receivable	20,000
   Allowance fro Bad Debts	800
   Sales Revenue	135,000

   		$2,000
   		$2,080
   		$2,800
   		$1,200

1 points   

QUESTION 5

1. A promissory note dated Dec. 1, 2012 bearing interest at a rate of 8% and due in 60 days is sent ot a creditor. The face value of the note is $10,000. The entry for accrued interest at December 31, 2012 by the issuer of the note includes a:

   		Debit to interest expense of $67
   		A credit ot interest payable of $133
   		Credit to interest expense of $67
   		Debit to interest payable of $133

1 points   

QUESTION 6

1. The entry (or entries) requried to record a sales return by a customer when using the perpetual inventory method would consist of:

   		A debit to Sales Revenue and a credit to Accounts Receivable
   		A debit to Sales Returns and Allowances and a credit to Accounts Receivables
   		Debits to Sales Returns and Allowances and Inventory and credits to Accounts Receivable and Costs of Goods Sold
   		Debits to Sales Returns and Allowances and Cost of Goods Sold and credits to Accounts Receivable and Inventory

1 points   

QUESTION 7

1. Which of the following will result if the current year's ending inventory amount is understated in the cost of goods calculation:

   		Cost of goods sold will be overstated
   		Total assets will be overstated
   		Net income will be overstated
   		Both A and C

1 points   

QUESTION 8

1. Which of the following would be true if inventory costs were increasing?

   		LIFO would result in lower net income and lower ending inventory amounts than would FIFO
   		FIFO would result in lower net income and higher ending inventory amounts than would LIFO
   		LIFO would result in a lower net income amount but a higher ending inventory amount that would FIFO
   		None of the above

1 points   

QUESTION 9

1. Given the following sale and purchasing information, what is the ending iinventory, if the periodic FIFO costing alternative is used? The beginning inventory on hand was 100 units at $1 each.

   1st Purchase	700 units @ $2
   2nd Purchase	1,000 units @ $3
   3rd Purchase	500 units @ $4
   4th Purchase	500 units @ $5
   Total units purchased	2,700
   1st Sale	400 units @$7
   2nd Sale	750 units @$8
   3rd Sale	500 units @$9
   4th Sale	500 units @$10
   Total units sold	2,150

   		$400
   		$500
   		$1,250
   		$3,100

1 points   

QUESTION 10

1. Using the following purchases and sales, what is the ending inventory if the periodic LIFO costing alternative is used? The beginning inventory iis 100 units on hand at $2 each.

   1st Purchase	500 units @$2
   2nd Purchase	1,000 units @ $3
   3rd Purchase	500 units @ $4
   4th Purchase	500 units @ $5
   Total units purchased	2,500
   1st Sale	600 units @$7
   2nd Sale	750 units @$8
   3rd Sale	500 units @$9
   4th Sale	500 units @$10
   Total units sold	2,350

   		$400
   		$500
   		$1,250
   		$3,100

1 points   

QUESTION 11

1. Using the following information, what is the average cost per unit available for sale during the year if the periodic inventory method is used (round to nearest cent)? The beginning inventory on had was 100 units at $1 each.

   1st Purchase	500 units @$2
   2nd Purchase	1,000 units @ $3
   3rd Purchase	500 units @ $4
   4th Purchase	500 units @ $5
   Total units purchased	2,500
   1st Sale	600 units @$7
   2nd Sale	750 units @$8
   3rd Sale	500 units @$9
   4th Sale	500 units @$10
   Total units sold	2,350

   		$2.61
   		$3.10
   		$3.53
   		$3.31

1 points   

QUESTION 12

1. A firm had a beginning inventory balance of $1,000, net purchases of $35,000 and sales of $40,000. Its gross margin percentage was 25%. Using the gross margin method, the ending inventory balance is:

   		$1,000
   		$7,000
   		$6,000
   		$10,000

1 points   

QUESTION 13

1. Which of the following is NOT usually depreciated, depleted or amortized?

   		Furniture
   		Land
   		Mineral deposits
   		Patents

1 points   

QUESTION 14

1. Depreciation can best be described as a method of

   		Allocating the costs of assets over their useful life
   		Accumulating funds for the replacement of assets
   		Reducing the carrying cost of assets to current market value
   		Deriving tax benefits

1 points   

QUESTION 15

1. The book value of an asset is the:

   		Original cost of the asset
   		Market value of the asset
   		Total of all expenses associated with the asset
   		Acquisition cost of the asset less any accumulated depreciation on the asset

1 points   

QUESTION 16

1. On January 1, 2012 Powers Press purchased equipment at a cost of $6,300. The equipment had an estimated useful life of three years or 15,000 hours. The equipment will have a $600 salvage value at the end of its life. The depreciation expense for the year ending December 31, 2012 using the straight-line method would be:

   		$1,900
   		$1,883
   		$475
   		$471

1 points   

QUESTION 17

1. On January 1, 2006, Powers press purchased equipment at cost of $6,300. The equipment had an estimated useful life of three years or 15,000 hours. The equipment will have a $600 salvage value at the end of its life. The equipment was used for 3,250 hours in 2012. The depreciation epense for the year ending December 31, 2012 using the units of production method would be:

   		$1,900
   		$1,235
   		$3,250
   		$1,365

1 points   

QUESTION 18

1. On January 1, 2011, Kinnear Company purchased equipment at a cost of $20,000. The equipment had useful life of 5 years and a salvage value of $2,000. Kinnear Company use the straight-line depreciation method for all its assets. Given this information, if the company sells the equipment for $13,600 on December 31, 2006, it will have a(n):

   		$2,000 loss
   		$2,000 gain
   		$800 loss
   		$800 gain

1 points   

QUESTION 19

1. The balance sheet category "intangible assets" includes:

   		Patents, trademarks and franchises
   		Equipment, land and buildings
   		Investments, receivables and customer lists
   		Goodwill, inventory and furnishings

1 points   

QUESTION 20

1. On March 3, 2006, Binford Tools acquired the following assets from Mace Harware for $360,000. How much goodwill should be recorded for this transactions?

   	Book Value	Fair Market Value
   Accounts Receivable	58,000	33,000
   Inventory	92,000	76,000
   Equipment	139,000	182,000
   Patent	13,000	8,000

   		$61,000
   		$58,000
   		$39,000
   		0