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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 336

Which of the following is an example of an efficiency measure?

Correct Answer: C
The number of insurance claims processed per day is a typical measure used in a balanced scorecard. It relates to the critical success factor of productivity. This factor is based on an input-output efficiency) relationship. An organizational structure is efficient if it facilitates the accomplishment of organizational objectives with minimum resources and fewest unsought consequences. An efficient organizational structure maximizes output for a given amount of input. Thus, an efficiency measure compares input with output. Insurance claims processed per day relates output claims processed) to input a day's work).
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Question 337

In an economic order quantity EOQ) model, both the costs per order and the holding costs are estimates. If those estimates are varied to determine how much the changes affect the
optimal EOQ, such an analysis would be called a:

Correct Answer: B
An economic order quantity EOQ) sensitivity analysis involves varying the holding carrying) costs per unit and/or the order costs to determine how much the changes affect the optimal EOQ.
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Question 338

An investor has been given several financial ratios for an entity but none of the financial reports. Which combination of ratios can be used to derive return on equity?

Correct Answer: D
The profit margin equals the profit available to ordinary shareholders divided by sales, the total assets turnover equals sales divided by total assets, and the product of these two ratios is the return on assets. This result is the basic Du Pont equation. In the extended Du Pont equation, the return on assets is multiplied by the leverage factor, also called the equity multiplier total assets + ordinary equity at carrying amount). The extended Du Pont equation gives the return on ordinary equity. This result is obtained because the total assets and sales factors cancel in the multiplication of the three ratios.
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Question 339

The cost of go is sold for the current year ended December 31 would be:

Correct Answer: A
An entity had the following opening and closing inventory balances during the current year:

The following transactions and events occurred during the current year
US $300,000 of raw materials were purchased, of which US $20,000 were returned
because of defects. US $600,000 of direct labor costs were incurred.
US $750,000 of production overhead costs were incurred.
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Question 340

In making a cash flow analysis of property, plant, and equipment PPE), the internal auditor discovered that depreciation expense for the period was US $10,000. PPE with a cost of US $50,000 and related accumulated depreciation of US $30,000 was sold for a gain of US $1.000. If the carrying amount of PPE increased by US $80,000 during the period, how much PPE was purchased this period?

Correct Answer: C
The carrying amount of the PPE account, net of accumulated depression is increased by the cost of purchases and decreased by the carrying amount of items of PPE sold and depreciation. the net PPE decreased by the carrying amount of items sold, or US$20,000($50,000 cost-$30,000 accumulated depreciation),and by the US$10,000 of depreciation, if PE still increased byUS$80,000,US$110,000($30,000 total decrease+$80,000 increase)of equipment must have3 been purchased.
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