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  1. Home
  2. IIA Certification
  3. IIA-CIA-Part3 Exam
  4. IIA.IIA-CIA-Part3.v2025-10-13.q454 Dumps
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Question 1

The Eastern division, it sells goods internals to the Western division of the company. The quoted external price in industry publications from a supplier material near Eastern in US $ 200 per ton plus transportation. It costs US $ 20 per ton to transport the goods to Western Eastern's actual market cost per ton to buy the direct materials to make the transferred product is US $100. Actual per ton direct labor is US $50. Other actual costs of storage and handling are US $40. The company president select a US $220 transfer price. This is an example of:

Correct Answer: A
A transfer price is the price charged by one segment of an organization for a product or service supplied to another segment of the same organization. The three basic criteria that the transfer pricing system in a decentralized company should satisfy are to 1) provide information allowing central management to evaluate divisions with respect to total company profit and each division's contribution to profit. 2) stimulate each manager's efficiency without losing each division's autonomy, and 3) motivate each divisional manager to achieve his/her own profit goal in a manner contributing to the company's success. Because the US $220 transfer price selected is based on the quoted external price market), it is an example of market-based transfer pricing.
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Question 2

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 fallowing statements is most likely true?

Correct Answer: A
TQM emphasizes the supplier's relationship with the customer and recognizes that everyone in a process is at some time a customer or supplier of someone else, either within or outside the organization. The costs of quality include costs of conformance and costs of nonconformance. Casts of conformance include prevention costs and appraisal inspection) costs. Nonconformance costs are composed of internal failure costs and external failure costs, such as lost opportunity. Conformance costs prevention and appraisal) increased substantially, whereas the nonconformance casts internal and external failure) decreased.
Hence, the increase in conformance casts resulted in a higher-quality product.
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Question 3

An entity has US $400 of current assets, composed of US $200 of cash, US $100 of accounts receivable, and US $100 of inventory. The entity has US $200 of long-term debt, US $100 of accounts payable, and US $75 of notes payable. The notes payable are due in 6 months. The acid-test ratio, to two decimal places, is:

Correct Answer: C
The acid-test ratio equals current assets US $400) minus inventories US $100), divided by current liabilities US $100 + $75 = US $175), or 1.71.
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Question 4

An organization has instituted a bring-your-own-device (BYOD) work environment. Which of the following policies best addresses the increased risk to the organization's network incurred by this environment?

Correct Answer: A
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Question 5

Which of the following parties is most likely to be responsible for maintaining the infrastructure required to prevent the failure of a real-time backup of a database?

Correct Answer: D
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