Pass Your Certified Internal IIA-CIA-Part3 Exam Easily with Accurate PDF Questions [Jan 28, 2022]
IIA-CIA-Part3 Certification Exam Dumps Questions in here
NEW QUESTION 94
A computer company charges indirect manufacturing costs to a project at a fixed percentage of a cost pool. This project is covered by a cost-plus government contract.
Which of the following is an appropriate guideline for determining how costs are assigned to the pool?
- A. Assign prime costs and variable administrative costs to the same pool.
- B. Establish a separate pool for each assembly line worker to account for wages.
- C. Establish separate pools for variable and fixed costs.
- D. Assign all manufacturing costs related to the project to the same pool.
Answer: C
Explanation:
Cost pools are accounts in which a variety of similar costs are accumulated prior to allocation to cost objectives. The overhead account is a cost pool into which various types of overhead are accumulated prior to their allocation. Indirect manufacturing costs are an element of overhead allocated to a cost pool. Ordinarily, different allocation methods are applied to variable and fixed costs, thus requiring them to be separated. Establishing separate pools allows the determination of dual overhead rates. As a result, the assessment of capacity costs, the charging of appropriate rates to user departments, and the isolation of variances are facilitated.
NEW QUESTION 95
A global firm establishes a cost-based price for its product in each country. The most likely negative outcome is that this pricing strategy will:
- A. Result in dumping.
- B. Bet too high a price in countries where the firm's costs are high.
- C. Create a gray market.
- D. Overprice the product in some markets and underprice it in others.
Answer: B
Explanation:
A firm may set a cost-based price in each market with a standard markup. In a region or country where costs are high, this strategy may result in prices that are too high to be competitive within the local market.
NEW QUESTION 96
Which of the following issues would be of most concern to an auditor relating to an organization's Internet security policy?
- A. Auditor documentation.
- B. Data integrity.
- C. Rejected and suspense item controls.
- D. System efficiency.
Answer: B
Explanation:
Controls are intended to ensure the integrity, confidentiality, and availability of information. An auditor relies on the integrity of the system's data and programs in making critical decisions throughout the audit process.
NEW QUESTION 97
A device used to connect dissimilar networks is a:
- A. Router.
- B. Bridge.
- C. Gateway.
- D. Wiring concentrator.
Answer: C
Explanation:
A gateway, often implemented via software, translates between two or more different protocol families and makes connections between dissimilar networks possible.
NEW QUESTION 98
In Year 2, the entity had cash provided by operations of:
- A. US $244,000
- B. US $219,000
- C. US $344,000
- D. US $469,000
Answer: B
Explanation:
Cash provided by operations equals profit, plus depreciation, minus the increase in accounts receivable, minus the decrease in accounts payable. The cash provided is US $219,000 [$294,000 + $50,000 -$300,000 - $200,000) -$275,000 - $250,000)]. An increase in receivables is a noncash component of profit. A decrease in accounts payable is added when adjusting cost of goods sold to reflect cash paid to suppliers. Thus, it is subtracted when adjusting profit to arrive at cash provided by operations. An entity has the following statements:
NEW QUESTION 99
Traditional information systems development and operational procedures typically involve four functional areas. The systems analysis function focuses on identifying and designing systems to satisfy organizational requirements. The programming function is responsible for the design, coding, testing, and debugging of computer programs necessary to implement the systems designed by the analysis function. The computer operations function is responsible for data preparation, program/job execution, and system maintenance. The user function provides the input and receives the output of the system.
Which of these four functions is often poorly implemented or improperly omitted in the development of a new end-user computing EUC application?
- A. Systems analysis function.
- B. User function.
- C. Programming function.
- D. Computer operations function.
Answer: A
Explanation:
Systems analysis is one step that is not absolutely required in the development of a system. The desire to produce a system quickly may result in this step being eliminated or poorly implemented. A system is often produced and then analyzed to see if it will satisfy the needs of the organization. In an EUC application, the systems analysis is often incomplete or omitted.
NEW QUESTION 100
Which of the following criteria would be most useful to a sales department manager in evaluating the performance of the manager's customer-service group?
- A. Customer complaints should be processed promptly.
- B. The customer is always right.
- C. Employees should maintain a positive attitude when dealing with customers.
- D. All customer inquiries should be answered within 7 days of receipt.
Answer: D
Explanation:
A criterion that requires all customer inquiries to be answered within 7 days of receipt permits accurate measurement of performance. The quantitative and specific nature of the appraisal using this standard avoids the vagueness, subjectivity, and personal bias that may afflict other forms of personnel evaluations.
NEW QUESTION 101
The expected payoff if the vendor has perfect information is:
- A. US $3,900
- B. US $2,200
- C. US $1,960
- D. US $1,360
Answer: B
Explanation:
The vendor would like to sell coffee on cold days US $2,000) and soft drinks on hot days US $2,500). Hot days are expected 40°l0 of the time. Hence, the probability is 40°f0 of making US $2,500 by selling soft drinks. The chance of making US $2,000 by selling coffee is 600k. The payoff equation is:
4 US $2,600) + .6 $2,000 = US $2,200
A beverage stand can sell either soft drinks or coffee on any given day. If the stand sells soft drinks and the weather is hot, it will make US $2,500; if the weather is cold, the profit will be U $1,000. If the stand sells coffee and the weather is hot, it will make US $1,900; if the weather is cold, the profit will be U $2,000. The probability of cold weather on a given day at this time is 60%.
NEW QUESTION 102
Which of the following is the most likely reason an organization may decide to undertake a stock split?
- A. To enhance the stock liquidity.
- B. To keep shareholders' equity constant.
- C. To increase shareholders' equity.
- D. To keep stock price constant.
Answer: A
NEW QUESTION 103
The marginal cost of capital MCC) curve for this entity rises price, first when the entity has raised US $75 million and again when US $175 million of new funds has been raised. These increases in the MCC are caused by:
- A. Decreases in the cost of at least one of the financing sources.
- B. Increases in the returns on the additional investments undertaken.
- C. Increases in the cost of at least one of the financing sources.
- D. Decreases in the returns on the additional investments undertaken.
Answer: C
Explanation:
The MCC is a weighted average of the costs of the different financing sources. If the cost of any source of financing increases, the MCC curve will rise. The MCC curve is upward sloping because the lowest cost financing sources are assumed to be used first. Thus, as cumulative debt increases, the cost of debt also increases. CyberAge Outlet. a relatively new store, is a cafe that offers customers the opportunity to browse the Internet or play computer games at their tables while they drink coffee. The customer pays a fee based on the amount of time spent signed on to the computer. The store also sells books, tee-shirts, and computer accessories. CyberAge has been paying all of its bills on the last day of the payment period, thus forfeiting all supplier discounts. Shown below are data on CyberAge's two major vendors, including average monthly purchases and credit terms.
NEW QUESTION 104
Why have many European Union countries not adopted ISO 14000 environmental standards?
- A. ISO 14000 standards will not make it easier to do business across borders.
- B. Regulators are permitted to use voluntary audits as a basis for punitive action.
- C. Following ISO 14000 standards will not reduce monitoring and inspection by regulatory agencies.
- D. Individual European Union countries' standards are typically more strict than ISO 14000 standards.
Answer: D
Explanation:
Some European countries already have environmental systems in place, and individual countries' standards are typically more strict than the ISO 14000 standards. Furthermore, the relationship of these single-country standards with ISO 14000 is unclear.
NEW QUESTION 105
Which of the following is a definition of predatory pricing?
- A. Pricing products below cost to destroy competitors.
- B. Pricing products at different prices for different customers.
- C. Selling below cost in other countries.
- D. Conspiring to restrict output and set artificially high prices.
Answer: A
Explanation:
Predatory pricing is the practice of pricing products below cost to destroy competitors. A price is predatory if it is below an appropriate measure of costs, and the seller has a reasonable prospect of recovering its losses in the future through higher prices or greater market share.
NEW QUESTION 106
An entity issues 10-year bonds with a face amount of US $1 million, dated January 1,
Year 1, and bearing interest at an annual rate of 12% payable semiannually on January 1 and July 1 The full interest amount will be paid each due date. The market rate of interest on bonds of similar risk and maturity, with the same schedule of interest payments, is also 12%. If the bonds are issued on February 1, Year 1, the amount the issuing entity receives from the buyers of the bonds on that date is:
- A. US $1,010,000
- B. US $990,000
- C. US $1,000,000
- D. US $1,020,000
Answer: A
Explanation:
The amount the issuing entity receives on 2/11Yr 1 is the face amount of the issue plus 1 month of accrued interest, or US $1,010,000 {$1,000,000 + [($1,000,000 x 12%) -12]}.
NEW QUESTION 107
Providing knowledge, motivating organizational members, controlling and coordinating individual efforts, and expressing feelings and emotions are all functions of:
- A. Communication.
- B. Motivation.
- C. Performance.
- D. Organizational structure.
Answer: A
NEW QUESTION 108
If, in addition to the estimated profits, management of the bank assesses the probabilities of high, medium, and low demands to be 0.3, 0.4, and 0.3 respectively, what is the expected opportunity loss from selecting location of L4?
- A. 5.50
- B. 7.90
- C. 7.50
- D. 5.00
Answer: A
Explanation:
The opportunity loss matrix is as follow:
NEW QUESTION 109
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