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IIA IIA-CIA-Part3 Valid Test Voucher - IIA-CIA-Part3 Valid Exam Bootcamp

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IIA Business Knowledge for Internal Auditing Sample Questions (Q59-Q64):

NEW QUESTION # 59
The following data are available from the records of a department store for the year ended
December 31, Year 1:

Using the retail method to approximate valuation at lower of average cost or net realizable value, the department store's merchandise inventory at December 3-1, Year 1 is

A. Ur $6,000]
B. US $8.400
C. US T3.900
D. US $5,600

Answer: D

Explanation:
The version of the retail method that approximates a lower-of-average-cost-or-NRV valuation includes markups but not markdowns in the cost-to-retail ratio. Thus, the cost of the inventory at December 31, Year 1 is US $5,600.

NEW QUESTION # 60
During the growth stage of a product's life cycle,

A. The quality of the products becomes more variable and products are less differentiated.
B. There is little difference between competing products.
C. New product models and features are introduced.
D. The quality of products is poor.

Answer: C

Explanation:
In the growth stage, sales and profits increase rapidly, cost per customer decreases, customers are early adopters, new competitors enter an expanding market, new product models and features are introduced, and promotion spending declines or remains stable. The firm enters new market segments and distribution channels and attempts to build brand loyalty and achieve the maximum share of the market. Thus, prices are set to penetrate the market, distribution channels are extended, and the mass market is targeted through advertising. The strategy is to advance by these means and by achieving economies of productive scale.

NEW QUESTION # 61
Organizational activities that complement each other and create a competitive advantage are called a:

A. Joint venture.
B. Strategic goal.
C. Strategic fit.
D. Merger.

Answer: C

NEW QUESTION # 62
A bank plans to open a branch in one of five locations (labeled L1, L2, L3, L4, L5). Demand for bank services may be high, medium, or low at each of these locations. Profits for each location-demand combination are presented in the payoff matrix.

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 L4?

A. US$7.50
B. US$5.50
C. US$7.90
D. US$5.00

Answer: B

Explanation:
First, the opportunity loss matrix must be prepared

NEW QUESTION # 63
The company uses a planning system that focuses first on the amount and timing of finished goods demanded and then determines the derived demand for raw material, components, and subassemblies at each of the prior stages of production. This system is referred to as:

A. Just-in-time purchasing.
B. Material requirements planning.
C. Linear programming.
D. Economic order quantity.

Answer: B

Explanation:
Materials requirements planning CIRF) is usually a computer-based information system designed to plan and control raw materials used in a production setting. It assumes that estimated demand for materials is reasonably accurate and that suppliers can deliver based upon this accurate schedule. It is crucial that delivery delays be avoided because, under CIRF, production delays are almost unavoidable if the materials are not on hand. An MRF system uses a parts list, often called a bill of materials, and lead times for each type of material to obtain materials just as they are needed for planned production.

NEW QUESTION # 64
......

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