IIA-CIA-Part3 Actual Questions Answers Pass With Real IIA-CIA-Part3 Exam Dumps
IIA-CIA-Part3 Dumps Prepare Your Exam With 344 Questions
NEW QUESTION # 85
A restaurant decided to expand its business to include delivery services, rather than relying on third-party food delivery services. Which of the following best describes the restaurants strategy?
- A. Differentiation
- B. Risk avoidance
- C. Vertical integration
- D. Diversification
Answer: C
NEW QUESTION # 86
Which of the following conflict resolution methods should be applied when the intention of the parties is to solve the problem by clarifying differences and attaining everyone's objectives?
- A. Compromising.
- B. Competing.
- C. Collaborating.
- D. Accommodating.
Answer: C
NEW QUESTION # 87
The economic order quantity Q is the size of the order that minimizes total inventory costs.
These costs, which are composed of ordering and holding costs, can be computed using the following expression:
The following inventory information is available for an organization:
If the organization decides to order 4.000 units at a time rather than 2.000 units by hour much will its total inventory costs change?
- A. US $500 increase
- B. US $1,000 decrease.
- C. US $1,000 increase.
- D. US $900 increase.
Answer: A
Explanation:
When the order size is 2.000 units, the variable inventory costs are US $2.000 {[(2,000 units $1) - 2] -I- [(20,000 units - 2,000 units) $100]}. When the order size is 4,000 units, the variable inventor -.costs are US $2,500 1[(4,000 units $1) - 2] + [(20,000 units - 4,000 units) $100]}. The increase in inventor-.j costs is US $500 $2.500 - $2,000).
NEW QUESTION # 88
All of the following are potential security issues for e-commerce except:
- A. Correct identification of transacting parties.
- B. Proliferation of computer viruses.
- C. Verification of payment data.
- D. Determining who may rightfully make transaction decisions.
Answer: B
Explanation:
E-commerce is the purchase and sale of goods and services by electronic means. Ecommerce may occur via online transactions on public networks electronic data interchange EDI), and email. E- commerce security issues include the correct identification of transacting parties authentication), determining who may rightfully make decisions authorization), and verification of payment data. While proliferation of computer viruses is a general security issue with regard to information systems, it is not a specific risk associated with e- commerce.
NEW QUESTION # 89
An organization decided to install a motion detection system in its warehouse to protect against after-hours theft. According to the COSO enterprise risk management framework, which of the following best describes this risk management strategy?
- A. Elimination.
- B. Reduction.
- C. Sharing.
- D. Avoidance.
Answer: B
NEW QUESTION # 90
The following information and diagram apply to a project:
The earliest completion time for the project is:
- A. 15 days.
- B. 11 days.
- C. 14 days.
- D. 20 days.
Answer: A
Explanation:
The two paths through the network are A-C-E (5 + 4 + 6 = 15 days) and B-D-E (3 + 2 + 6 = 11 days). The critical or longest path is thus A-C-E. Hence, the earliest completion time is 15 days.
NEW QUESTION # 91
When comparing two companies, if all else is equal, the entity that has a higher dividend payout ratio will have a:
- A. Higher price to earnings ratio.
- B. Higher marginal cost of capital.
- C. Lower debt ratio.
- D. Higher investment opportunity schedule.
Answer: B
Explanation:
The higher the dividend payout ratio, the sooner retained earnings are exhausted and the entity must seek more costly, outside equity financing. This drives the marginal cost of capital.
NEW QUESTION # 92
A 70%-owned subsidiary declares and pays a cash dividend. What effect does the dividend have on the retained earnings and noncontrolling interest balances in the parent's consolidated balance sheet?
- A. No effect on retained earnings and a decrease in noncontrolling interest.
- B. No effect on either retained earnings or noncontrolling interest.
- C. A decrease in retained earnings and no effect on noncontrolling interest.
- D. Decreases in both retained earnings and noncontrolling interest.
Answer: A
Explanation:
The parent's investment in subsidiary account and its proportionate share of the subsidiary's equity accounts, which include retained earnings, are eliminated in a consolidation. The remainder of the subsidiary's equity is reported separately as the noncontrolling interest. Thus, consolidated retained earnings is essentially the parent's retained earnings at year-end The subsidiary's cash dividend reduces its retained earnings balance and therefore the noncontrolling interest but not the parent's retained earnings.
NEW QUESTION # 93
If a just-in-time purchasing policy is successful in reducing the total inventory costs of a manufacturing company, which of the following combinations of cost changes would be most likely to occur?
- A. An increase in stockout costs and a decrease in carrying costs.
- B. An increase in quality costs and a decrease in ordering costs.
- C. An increase in purchasing costs and a decrease in quality costs.
- D. An increase in purchasing costs and a decrease in stockout costs.
Answer: A
Explanation:
In this situation, the company will be receiving fewer materials at any point in time, increasing the likelihood of stockout and thereby resulting in an increase in a reduction in the carrying cost. At the same time, the average inventory will be less, resulting in a reduction in the carrying cost.
NEW QUESTION # 94
The graph depicts the domestic supply of and demand for a product that is also sold in the domestic market by foreign producers. The domestic producers are protected by a tariff of the amount Pt minus Pw. Bt is the domestic price including the tariff, and Rw is the world price for the product. The effect of the tariff is to:
- A. Reduce foreign sales in the domestic market from ac to bc.
- B. Increase domestic production from Ob to Cc.
- C. Increase domestic production from Oa to Ob.
- D. Reduce the domestic price from ORw to ORt
Answer: C
Explanation:
Without the tariff, domestic production is determined by the intersection of the Pw line with the domestic supply curve at the quantity Oa. Domestic production increases from Oa to Ob as a result of the introduction of the tariff. Supply intersects the Pt line at a higher price and at a greater domestic quantity, Ob.
NEW QUESTION # 95
While conducting' audit procedures at the organization's data center an internal auditor noticed the following:
- Backup media was located on data center shelves.
- Backup media was organized by date.
- Backup schedule was one week in duration.
The system administrator was able to present restore logs.
Which of the following is reasonable for the internal auditor to conclude?
- A. Backup procedures are adequate and appropriate according to best practices.
- B. Backup media is not properly stored, as the storage facility should be off-site.
- C. Backup media is not properly indexed, as backup media should be indexed by system, not date.
- D. Backup schedule is not sufficient, as full backup should be conducted daily.
Answer: B
NEW QUESTION # 96
An entity produces a country A and sells some of its output in country B. Selling prices are identical in the two countries. The corporate tax rates are 40% in country A and 20% in country B. Assuming that the entity does not increase or decrease production, it should <List A> sales in country B and set as <List B> a transfer price as possible, in order to minimize global taxes.
- A. Option C
- B. Option A
- C. Option B
- D. Option D
Answer: C
Explanation:
The tax-minimizing strategy is to minimize taxable income where tax rates are high and to maximize taxable income where tax rates are low. Consequently, the entity should sell more in country B but set a low transfer price. This dual strategy minimizes sales and profits in country A, minimizes cost of sales in country B. and maximizes sales and profits in country B.
NEW QUESTION # 97
The following data apply to one item sold by a large retailer:
Purchase price US $ 4.95 Using the contribution approach to pricing, which of the following prices is the lowest that can be charged in the short run?
- A. US $5.00
- B. US $9.50
- C. US $8.00
- D. US $7.00
Answer: C
Explanation:
In the short run, the fixed costs are sunk costs. They will be incurred whether or not the item is produced. Accordingly the retailer will suffer no additional loss if the price charged covers the incremental costs, which are the variable costs in this case. The lowest feasible price is the one that provides a zero but not a negative) contribution margin revenue -variable costs). Thus, the lowest short-run price is the unit variable cost US $4.95
+ $2.00 + $1.00 = US$7.95). The lowest price provided in the answer choices that will recover the unit variable cost is US $8.00.
NEW QUESTION # 98
On the last day of the year, a total cost of S 150.000 was incurred in indirect labor related to one of the key products an organization makes. How should the expense be reported on that year's financial statements?
- A. It should be reported as an administrative expense on the income statement.
- B. It should be reported as cost of goods sold on the income statement.
- C. It should be reported on the balance sheet as part of inventory.
- D. It should be reported as period cost other than a product cost on the management accounts
Answer: B
NEW QUESTION # 99
Managers at a consumer products company purchased personal computer software from only recognized vendors and prohibited employees from installing nonauthorized software on their personal computers. To minimize the likelihood of computer viruses infecting any of its systems, the company should also:
- A. Recompile infected programs from source code backups.
- B. Institute program change control procedures.
- C. Test all new software on a stand-alone personal computer.
- D. Restore infected systems with authorized versions.
Answer: C
Explanation:
Software from recognized sources should be tested in quarantine for example, in a test development machine or a stand-alone personal computer) because even vendors applied software may be infected with viruses. The software should be run with a vaccine program and tested for the existence of logic bombs, etc.
NEW QUESTION # 100
Company F applies a target pricing and costing approach. The following information about costs and revenues of Company F's product are available for the year just ended:
Company F plans to increase unit sales to 80,000 by reducing the product's unit price to US $320. If Company F desires a unit target operating income of 12%, by what amount must it reduce the full cost per unit?
- A. US $38.40
- B. US $32.00
- C. US $70.40
- D. US $80.00
Answer: C
Explanation:
Unit target operating income is US $38.40 12% > $320 unit target price). Hence, the unit target full cost is US $281.60 $320 - $38.40). The current full cost per unit is US $352.00 [($13,200,000 CGS + $7,920,000 other value chain operating costs) - 60,000 units sold], so the necessary reduction in the full cost per unit is US $70.40 $352.00 - $281.60).
NEW QUESTION # 101
Operational management in the IT department has introduced performance evaluation policies that are linked to employees achieving continuing education hours. This activity is designed to prevent which of the following conditions?
- A. Knowledge/skills gap
- B. Accountability/reward failure.
- C. Monitoring gap
- D. Communication failure.
Answer: A
NEW QUESTION # 102
......
New IIA-CIA-Part3 Dumps - Real IIA Exam Questions: https://www.itexamreview.com/IIA-CIA-Part3-exam-dumps.html
Dependable IIA-CIA-Part3 Exam Dumps to Become IIA Certified: https://drive.google.com/open?id=1hHBaqzlsKGoPHCikDORZPEajmwp03woV
