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  1. Home
  2. IIA Certification
  3. IIA-CIA-Part3 Exam
  4. IIA.IIA-CIA-Part3.v2023-06-10.q182 Dumps
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Question 66

Assume that additional workers are hired for the bottleneck operation to expedite setups and materials handling. The cost of the additional workers is US $50,000 per year. As a result, the annual output of the bottleneck operation will increase by 500 units. The change in operating income attributable to the increase in workers is:

Correct Answer: C
Operation 2 is the bottleneck because it is functioning at its capacity. The incremental annual throughput contribution revenues - direct materials costs) from adding workers to Operation 2 is US $36,000 [500 units x $120 unit price - $48 DPI per unit)]. Because the cost of the additional workers is US $50,000, the change in operating income is US $ 14,000). This information is relevant to a theory of constraints TOG) analysis. A manufacturer that can sell all of its output produces its sole product using three operations. Each unit sells for US $120, and direct materials costing US $48 per unit are added at the start of the first operation. Other variable costs are immaterial. The fallowing annual cost and capacity information is available concerning those operations:
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Question 67

According to IIA guidance on IT auditing, which of the following would not be an area examined by the internal audit activity?

Correct Answer: D
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Question 68

One of the primary advantages of budgeting is that it:

Correct Answer: D
A budget is a quantitative model of a plan of action developed by management. A budget functions as an aid to planning, coordination, and control. Thus, a budget helps management to allocate resources efficiently and to ensure that subunit goals are congruent with those of other subunits and of the organization.
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Question 69

In which of the following plans is an employee most likely to find guidance on action and performance standards?

Correct Answer: C
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Question 70

In accounting, which of the following statements is true regarding the terms debit and credit?

Correct Answer: D
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