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  1. Home
  2. IIA Certification
  3. IIA-CIA-Part3 Exam
  4. IIA.IIA-CIA-Part3.v2024-06-15.q282 Dumps
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Question 16

Company A is a producer of citrus flavored dessert products. Its most popular product is its key, lime pies, which are made with many fine ingredients, including egg yolks. Company A also sells the egg whites that are left over from its production process. These egg whites are sold at any price that is greater than the cost of storing and delivering them. What is the pricing of the egg whites?

Correct Answer: A
By-product pricing usually sots prices at any amount in excess of storing and delivering byproducts.
Such prices allow the seller to reduce the costs and therefore the prices of the main products.
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Question 17

Listed below are selected line items from the cost-of-quality report for Company B for last month Category:

What is Company B's total prevention and appraisal cost for last month?

Correct Answer: C
Answer (C) is correct. Prevention costs are incurred to prevent defects from occurring. An example is equipment maintenance. Appraisal costs are incurred to detect defective output during and after the production process. An example is product testing. Thus, total prevention and appraisal cost for the month equals US $1,940 (US$1,154 + US $786).
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Question 18

Which of the following types of budgets will best provide the basis for evaluating the organization's performance?

Correct Answer: B
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Question 19

A desired result of the sharing of information by all functions and organizations in the supply chain is:

Correct Answer: A
Sharing information about sales, inventory, pricing, advertising campaigns, and sales forecasts by all functions and organizations in the supply chain moderates demand uncertainty for all parties. The desired results are (1) minimization of inventories held by suppliers, manufacturers, and retailers; (2) avoidance of stockouts; (3) fewer rush orders; and (4) production as needed by retailers.
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Question 20

Which of the following principles s shared by both hierarchies and open organizational structures?
1. A superior can delegate the authority to make decisions but cannot delegate the ultimate responsibility for the results of those decisions.
2. A supervisor's span of control should not exceed seven subordinates.
3. Responsibility should be accompanied by adequate authority.
4. Employees at all levels should be empowered to make decisions.

Correct Answer: C
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