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Dumps IIA-CIA-Part3 Reviews - Certificate IIA-CIA-Part3 Exam

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IIA Business Knowledge for Internal Auditing Sample Questions (Q397-Q402):

NEW QUESTION # 397
Companies characterized by the production of basically homogeneous products will most likely use which of the following methods for the purpose of averaging costs and providing management with unit-cost data?

A. Process costing.
B. Direct costing.
C. Absorption costing.
D. Job-order costing.

Answer: A

Explanation:
Like products that are mass produced should be accounted for using process costing techniques to assign costs to products. Costs are accumulated by departments or cost centers rather than by jobs, work-in-process is stated in terms of equivalent units, and unit costs are established on a departmental basis. Process costing is an averaging process that calculates the average cost of all units.

NEW QUESTION # 398
Which of the following business practices promotes a culture of high performance?

A. Celebrating employees' individual excellence.
B. Periodically rotating operational managers.
C. Reiterating the importance of compliance with established policies and procedures.
D. Avoiding status differences among employees.

Answer: D

NEW QUESTION # 399
Which one of the following is not a characteristic of a negotiable certificate of deposit?
Negotiable certificates of deposit

A. Are usually sold in denominations of a minimum of US $100,000.
B. Have a secondary market for investors.
C. Are regulated by the government
D. Have yields considerably greater than bankers' acceptances and commercial paper.

Answer: D

Explanation:
A certificate of deposit CD) is a form of savings deposit that cannot be withdrawn before maturity without incurring a high penalty. A negotiable CD can be traded. CDs usually have a fairly high rate of return compared with other savings instruments because they are for fixed, usually long-term periods.

NEW QUESTION # 400
Which of the following is the best approach to overcome entry barriers into a new business?

A. Use an established distribution relationship.
B. Enter into a slow-growing market.
C. Invest in commodity or commodity-like product businesses.
D. Offer a standard product that is targeted in the recognized market.

Answer: A

NEW QUESTION # 401
Of the following, the greatest advantage of a database server) architecture is:

A. Data redundancy can be reduced.
B. Conversion to a database system is inexpensive and can be accomplished quickly.
C. Backup and recovery procedures are minimized.
D. Multiple occurrences of data items are useful for consistency checking.

Answer: A

Explanation:
Data organized in files and used by the organization's various applications programs are collectively known as a database. In a database system, storage structures are created that render the applications programs independent of the physical or logical arrangement of the data. Each data item has a standard definition, name, and format, and related items are linked by a system of pointers. The programs therefore need only to specify data items by name, not by location. A database management system handles retrieval and storage. Because separate files for different applications programs are unnecessary, data redundancy can be substantially reduced.

NEW QUESTION # 402
......

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