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  1. Home
  2. IIA Certification
  3. IIA-CIA-Part3 Exam
  4. IIA.IIA-CIA-Part3.v2025-07-07.q379 Dumps
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Question 166

Only two companies manufacture Product A. The finished product is identical regardless of which company manufactures it. The cost to manufacture Product A is US$1, and the selling price is US $2. One company considers reducing the price to achieve 100% market share but fears the other company will respond by further reducing the price. Such a scenario would involve a:

Correct Answer: A
If both firms reduce the selling price of Product A, neither will gain sales and the resultant price war will cause both firms to earn lower profits. This outcome is inevitable when reduced profit margins do not result in a significant increase in sales. This is classified as a no-win strategy.
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Question 167

A company's budget for next year contains the following information:

How many equivalent units should the company plan to produce next year?

Correct Answer: D
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Question 168

Which of the following best describes owner's equity?

Correct Answer: C
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Question 169

In light of increasing emission taxes in the European Union, a car manufacturer introduced a new middle-class hybrid vehicle specifically for the European market only.
Which of the following competitive strategies has the manufacturer used?

Correct Answer: C
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Question 170

Various tools are employed to control large scale projects. They include all of the following except:

Correct Answer: C
Statistical process quality) control is not used to control large scale projects. Statistical quality control is a method of determining whether the shipment or production run of units lies within acceptable limits. It is also used to determine whether production processes are out of control.
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