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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 16

Which of the following is an example of a nonfinancial internal failure quality cost?

Correct Answer: D
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Question 17

Omen Company is a manufacturer of men's shirts. It distributes weekly sales reports to each sales manager. The quantity 2R5 appeared in the quantity sold column for one of the items on the weekly sales report for one of the sales managers. The most likely explanation for what has occurred is that the:

Correct Answer: D
The probable explanation for reporting a quantity using a character other than a digit is that the data were incorrectly encoded and the computer program did not perform a field check, which would have detected the error. A field check tests whether a field consists of the proper characters, whether JI alphabetic, numeric, special, or combinations thereof.
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Question 18

In Year 2, a manufacturing company instituted a total quality management (TQM) program producing the following report:

On the basis of this report, which one of the following statements is most likely true?

Correct Answer: A
Answer (A) is correct. Prevention and appraisal costs increased substantially, but internal and external failure costs decreased. Thus, the soundest conclusion is that the increase in prevention and appraisal costs resulted in a higher-quality product.
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Question 19

The management and employees of a large household goods moving company believe that it if became nationally known as adhering to total quality management and continuous improvement, one result would be an increase in the company's profits and market share. What should the company focus onto achieve quality more economically?

Correct Answer: B
Prevention costs are incurred to prevent defects. Prevention is ordinarily less costly than the combined costs of appraisal, internal failure, and external failure.
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Question 20

If implementing EDI with suppliers permitted more frequent orders and more frequent communication about them, a company could be more effective by using EDI to:

Correct Answer: A
A well-managed company seeks to minimize the sum of the costs of holding and ordering inventory. An EDI system reduces the costs of ordering, thereby permitting the company to order more frequently. More frequent ordering reduces inventory and the associated holding costs.
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