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  1. Home
  2. IIA Certification
  3. IIA-CIA-Part3 Exam
  4. IIA.IIA-CIA-Part3.v2023-01-15.q275 Dumps
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Question 241

An entity had 300,000 shares of ordinary shares issued and outstanding at December 31. Year 1 No shares were issued during Year 2. On January 1, Year 2, the entity issued 200,000 shares of nonconvertible preference shares. During Year 2, the entity declared and paid US $75,000 of cash dividends on the ordinary shares and US $60,000 on the preference shares. Profit for the year ended December 31. Year 2 was US $330.000. What is the entity's Year 2 basic earnings per share?

Correct Answer: B
BEPS is equal to the amount of profit or loss attributable to ordinary equity holders divided by the weighted-average number of ordinary shares outstanding during the year. To calculate the numerator, dividends on cumulative preference shares must be subtracted from profit or loss whether or not the dividends were declared. Earnings per share for Year 2 thus amounted to US $0.90.
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Question 242

For a multinational organization, which of the following is a disadvantage of an ethnocentric
staffing policy?
1.It significantly raises compensation and staffing costs.
2.It produces resentment among the organization's employees in host countries.
3.It limits career mobility for parent-country nationals.
4.It can lead to cultural myopia.

Correct Answer: B
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Question 243

The drive-through service at a fast-food restaurant consists of driving up to place an order, advancing to a window to pay for the order, and then advancing to another window to receive the items ordered. This type of waiting-line system is:

Correct Answer: B
The drive-through represents a single queue (channel). Because this waiting line has three services in series, it may be said to be multiple phase. Another example is the typical factory assembly line. This terminology (channel, phase), however, is not used by all writers on queuing theory.
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Question 244

The four categories of costs associated with product quality costs are:

Correct Answer: B
Prevention costs are incurred to prevent defects. Appraisal costs are incurred to detect defective output during and after the production process. Internal failure costs are associated with defective output discovered before shipping. External failure costs are associated with defective output discovered after it has reached the customer.
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Question 245

Quality costing is similar in service and manufacturing organizations. Nevertheless, the differences between these organizations have certain implications for quality management. Thus,

Correct Answer: B
External failure costs arise when problems occur after delivery. They occur because products or services are nonconforming or otherwise do not satisfy customers. External failure costs in service enterprises are even more important than in manufacturing environments. Faulty goods sometimes maybe reworked or replaced to a customer's satisfaction, but poor service tends to result in a loss of customers.
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