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  1. Home
  2. IIA Certification
  3. IIA-CIA-Part3 Exam
  4. IIA.IIA-CIA-Part3.v2022-03-14.q256 Dumps
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Question 216

In an organization where enterprise risk management practices are mature, which of the following is a core internal audit role?

Correct Answer: A
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Question 217

What is the number of production runs per year of computer chairs that would minimize the sum of carrying and setup costs for RCF for the coming year?

Correct Answer: D
The EOQ minimizes the sum of carrying and setup costs. The EOQ is the amount at which carrying costs are equal to setup costs. Thus, plugging the data into the EOQ formula results in the following:

Thus, if each lot consists of 1.000 units, five production runs per year are needed to meet the 5.000-unit demand. At this level, setup costs will total US $5,000 (5 * $1.000) Carrying costs will also equal US $5,000 ($10 per unit carrying cost * average inventory of 500 units). Accordingly, total costs are minimized at US$10,000.
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Question 218

When attempting to devise creative solutions to problems, team members initially should do which of the following?

Correct Answer: B
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Question 219

Which one of the following is the best characteristic concerning the capital budget? The capital budget is a n)

Correct Answer: D
Capital budgeting is the process of planning expenditures for long-lived assets. It involves choosing among investment proposals using a ranking procedure. Evaluations are based on various measures involving rate of return on investment.
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Question 220

In Year 1, Company C introduced a new line of computer products that carry a 2-year warranty against defects and workmanship. The entire/ estimates that the total warranty cost will be 10% of sales, with 40% of the expenditures occurring during the first year and 60% during the second year_ Sales and actual warranty expenditures for Year 1 and Year 2 were as follows:

At the end of Year 2, what will the balance in the estimated accrued warranty liability account be?

Correct Answer: D
If the warranty expenses is 10% of sales, the total expense for the 2 years is US $70,000$700,000 10%). Of that US $70,000 ($700,000) x 10%). Of that US $70,000, $12,000 was paid in Year 1 and $30,000 in Year 2. The US $42,000 of payments leaves an unpaid balance of US $28.000$70,000 - $42,000).
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