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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 21

What must be monitored in order to manage risk of consumer product inventory obsolescence?
1.Inventory balances. 2.Market share forecasts. 3.Sales returns. 4.Sales trends.

Correct Answer: A
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Question 22

Company B's bank requires a compensating balance of 20% on a US $100.000 loan. If the stated interest on the loan is 7%, what is the effective cost of the loan?

Correct Answer: D
Interest on the loan is US $7,000 7% x $100,000) Given that the borrower has to maintain a 20% compensating balance, only US $80,000 [$100,000 - 20% x 100,000)] is available for use. Thus, the company is paying US $7.000 for the use of US $80.01 ii a in funds at an effective cost of 8.75% US. $7.000 / 80,000).
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Question 23

A company produces water buckets with the following costs per bucket:
Direct labor = 82
Direct material = $5
Fixed manufacturing = 83.50
Variable manufacturing = 82.50
The water buckets are usually sold for $15. However, the company received a special order for 50.000 water buckets at 311 each.
Assuming there is adequate manufacturing capacity and ail other variables are constant , what is the relevant cost per unit to consider when deciding whether to accept this special order at the reduced price?

Correct Answer: C
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Question 24

An internal auditor is reviewing the organization's performance appraisal process. Which of the following methods would be most effective to identify stereotyping?

Correct Answer: A
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Question 25

Queuing models are concerned with balancing the cost of waiting in the queue with the:

Correct Answer: A
Queuing (waiting-line) models minimize, for a given rate of arrivals, the sum of (1) the cost of providing service (including facility costs and operating costs) and (2) the cost of idle resources waiting in line. The latter may be a direct cost, if paid employees are waiting, or an opportunity cost in the case of waiting customers. This minimization occurs at the point where the cost of waiting is balanced by the cost of providing service.
insert code
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