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  1. Home
  2. IIA Certification
  3. IIA-CIA-Part3 Exam
  4. IIA.IIA-CIA-Part3.v2025-01-02.q249 Dumps
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Question 136

When executive compensation is based on the organization's financial results, which of the following situations is most likely to arise?

Correct Answer: D
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Question 137

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: D
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Question 138

Because of the large number of factors that could affect the demand for its new product, interactions among these factors, and the probabilities associated with different values of these factors, the marketing department would like to develop a computerized model for projecting demand for this product. By using a random-number procedure to generate values for the different factors, it will be able to estimate the distribution of demand for this new product. This method of estimating the distribution of demand for the new product is called:

Correct Answer: A
Simulations that use a random-number procedure to generate values for the inputs are Monte Carlo simulations.
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Question 139

What is the deferred tax asset or liability reported on Lally's balance sheet on December 31 Year 2?

Correct Answer: D
Deferred tax assets arise from deductible temporary differences and the carry Forward of unused tax losses and credits. Deferred tax liabilities arise from taxable temporary differences. The interest income not subject to tax resulted in neither future taxable nor future deductible amounts and therefore no deferred tax item was recognized for it. The only item resulting in a temporary difference was the rental income. A deferred tax liability would have been created at the end of Year I _ Given that the difference reversed in Year
2. no deferred amount existed at the end of Year 2.
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Question 140

Using variable costing, the company's operating profit was:

Correct Answer: B
Under variable costing, the product cost includes only variable manufacturing costs. All fixed costs are expensed in the period incurred. Unit product cost under variable costing is US $6 $600.000 100,000 units produced).

C:\Documents and Settings\usernwz1\Desktop\1.PNG A and B, are autonomous divisions of a corporation. They have no beginning or ending inventories, and the number of units produced is equal to the number of units sold. Following is financial information relating to the two divisions:
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