Midwest Insurance grades the monthly report of all claimed losses per insured as confidential. What is accomplished if all other reports from this insurance office are also assigned the appropriate…

Question

Options

• AThe costs for automating are easier to charge to the responsible departments.
• BA determination can be made as to which report should be printed first and which one can wait a little longer.
• CEveryone can easiliy see how sensitive the reports' contents are by consulting the grading label.
• DReports can be developed more easily and with fewer errors.

• A
  5% (2)
• B
  16% (7)
• C
  73% (32)
• D
  7% (3)

Explanation

Assigning grading labels to all reports creates a universal, at-a-glance communication system for sensitivity levels. When every report carries its appropriate classification (e.g., confidential, restricted, public), any employee who picks it up immediately knows how carefully it must be handled - no guesswork or prior knowledge of the content is required. This is the core purpose of an information classification scheme: visibility and consistency across the organization.

Why the distractors are wrong:

• A is incorrect because classification grading is about sensitivity, not cost allocation or departmental chargebacks - those are handled by budgeting/accounting systems.
• B is incorrect because grading reflects how sensitive information is, not how urgently it should be printed; print priority is an operational scheduling decision, not a classification outcome.
• D is incorrect because classification labels are applied after reports are developed; they don't guide the development process or reduce development errors.

Memory tip: Think of grading labels like nutrition labels on food - you don't need to eat the food to know what's in it. A classification label lets anyone "read" a report's sensitivity without opening it, just as a nutrition label communicates content at a glance.

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