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  1. Home
  2. IIA Certification
  3. IIA-CIA-Part3 Exam
  4. IIA.IIA-CIA-Part3.v2026-03-26.q303 Dumps
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Question 81

Prices vary directly with capacity usage under:

Correct Answer: B
Under peak-load pricing, prices vary directly with capacity usage. Thus, when idle capacity is available, that is, when demand falls, the price of a product or service tends to be higher given a peak-load pricing approach.
Topic 3, Volume C
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Question 82

An inventory clerk, using a computer terminal, views the following on screen part number, part description, quantity on hand, quantity on order, order quantity, and reorder point for a particular inventory item. Collectively, these data make up a:

Correct Answer: D
A record is a collection of related data items fields). A field data item) is a group of characters representing one unit of information. The part number, part description, etc., are represented by fields.
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Question 83

Which of the following best explains why an organization would enter into a capital lease contract?

Correct Answer: D
Reference: IIA Business Knowledge for Internal Auditing, Leasing and Financial Management section.
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Question 84

Refer to the exhibit.

Presented below are partial year-end financial statement data (000 omitted from dollar amounts) for companies A and B:
If company A has a quick ratio of 2:1, then it has an accounts receivable balance of:

Correct Answer: C
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Question 85

Heniser Pet Foods manufactures two products, X and Y.
The unit contribution margins for Products X and Y are US $30 and US $50, respectively. Each product uses Materials A and B. Product X uses 6 pounds of Material A and 12 pounds of Material B. Product Y uses 12 pounds of Material A and 8 pounds of Material B. The company can purchase only 1,200 pounds of Material A and 1,760 pounds of Material B. The optimal mix of products to manufacture is:

Correct Answer: C
Linear programming is a technique used to maximize a contribution margin function or to minimize a cost function, subject to constraints such as scarce resources or minimum/maximum levels of production. Thus, linear programming is often used for planning resource allocations. In this problem, the equation to be maximized, called the objective function, is: US $30X + $50Y. This equation is to be maximized subject to the constraints on materials. The two constraint functions are:
Material A: 6X+12Y< 1,200 Material B 12X + 8Y< 1,760
One way to solve this problem is to graph the constraint lines and determine the feasible area. The optimal production level is at an extreme point within the feasible area. The graph shows that a production level of 120 units of X and 40 units of Y is a feasible production level that maximizes the contribution margin.
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