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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 331

Which of the following professional organizations sets standards for quality and environmental audits?

Correct Answer: D
Explanation/Reference:
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Question 332

While auditing a marketing department, the internal auditor discovered that the product life cycle model was used to structure the marketing mix.
Under such a philosophy, the opportunity for cost reductions would be greatest in which stage of the life cycle?

Correct Answer: B
During the growth stage, the opportunity for cost reductions is at its maximum because production volume is increasing at a high rate. Thus, fixed costs are being spread over more units of production, and the benefits of the learning curve are being realized.
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Question 333

An entity uses the following formula in determining its optimal level of cash.

This formula is a modification of the economic order quantity EOQ formula used for inventory management. Assume that the set of selling marketable securities is US $10 per transaction and the interest rate on marketable securities is 6% per year. The entity estimates that it will make cash payments of US $12.000 over a one-month period. What is the average cash balance rounded to the nearest dollar)?

Correct Answer: C
The BOO for inventory is a function of ordering cost per order, inventory demand, and carrying cost. In the cash model, the fixed cost per sale of securities is equivalent to the ordering cost, the demand for cash is similar to the demand for inventory, and the interest rate is effectively the cost of carrying a dollar of cash for the period. Substituting in the formula yields an optimal cash balance of about US $6.928. Thus, the average cash balance is US $3,464 $6,928 - 2).
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Question 334

If a just-in-time purchasing system is successful in reducing the total inventory costs of a manufacturing company, which of the following combinations of cost changes would be most likely to occur?

Correct Answer: D
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Question 335

For the year just ended the entity has times-interest-earned of:

Correct Answer: C
The TIE ratio is a leverage ratio_ It emphasizes the ability to pay interest expense. The ratio equals profit before interest and taxes divided by interest

RST Corporation's Income Statement for Year 5 and Year 6


The market value of RST's ordinary stock at the end of Year 6 was US $100.00 per share.
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