Question

The accounting department at Synergy Hydroelectric records an average of 10,000 transactions per hour. By cost-benefit analysis, managers have concluded that the maximum acceptable loss of data in the event of a system failure is 40,000 transactions. The firm's recovery point objective is therefore A) 40,000 transactions B) 10,000 transactions C) 10 hours D) 4 hours

Answer 1

The firm's recovery point objective is 4 hours because it is the time equivalent to the maximum acceptable loss of 40,000 transactions divided by their average rate of 10,000 transactions per hour.

Step-by-step explanation:

The recovery point objective (RPO) of a company refers to the maximum amount of data that the company can afford to lose during a system failure. Synergy Hydroelectric records an average of 10,000 transactions per hour and managers have determined that the maximum acceptable loss is 40,000 transactions. To calculate the RPO in terms of time, you divide the maximum acceptable loss of data by the average number of transactions recorded per hour. In this case, it is 40,000 transactions divided by 10,000 transactions per hour, which equals 4 hours. Thus, the firm's recovery point objective would be 4 hours, not the number of transactions or any other time period.