IIA IIA-CIA-PART3 Online Practice Questions and Exam Preparation

IIA IIA-CIA-PART3 Online Questions & Answers

• Question 991:

  Which of the following stages of group development is associated with accepting team responsibilities?

  A. Forming stage.
  B. Performing stage.
  C. Norming stage.
  D. Storming stage.
  C. Norming stage.

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  Explanation

• Question 992:

  There are many types of third-party negotiations available to parties facing disagreement. If the goal is to be certain that settlement is reached, a negotiator with authority to make a decision should be selected. The best negotiator to select, given this goal, would be a(n):

  A. Mediator.
  B. Arbitrator.
  C. Consultant.
  D. Conciliator.
  B. Arbitrator.

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  Explanation

  An arbitrator has the authority to impose an agreement. Arbitration may be requested by the parties or may be imposed by law or by the terms of a contract.

• Question 993:

  High exit barriers may restrain firms from leaving an industry even though returns are poor.

  Which of the following is not an exit barrier?

  A. Specialized assets.
  B. Avoidance of environmental safeguard requirements.
  C. Participation in a group executing an overall strategy.
  D. Cost of labor settlements.
  B. Avoidance of environmental safeguard requirements.

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  Explanation

  Net liquidation value is reduced when the fixed costs of exit are high, e.g., the cost of labor settlements, payments to professionals involved in the divestiture (CPAs, attorneys, etc.), cancellation of contracts (with distributors, suppliers, managers, etc.), and resettlement orretraining. Moreover, announcement of exit may have such effects as reduced employee productivity, loss of customers, and a decline in supplier reliability. However, some required investments, such as in environmental safeguards, may be avoided. Thus, avoiding the capital investment in environmental safeguards maybe a reason to exit an industry if the investment exceeds the expected profits. This is an example of a fixed cost that is not an exit barrier.

• Question 994:

  A firm discounts never-before-discounted items. This action is an example of a:

  A. Divergence from industry precedent.
  B. Cross-parry.
  C. Divergence from prior strategic objectives.
  D. Bluff.
  A. Divergence from industry precedent.

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  Explanation

  The discounting of never-before-discounted items implies aggressive intent. It is an example of a divergence from industry precedent.

• Question 995:

  Which of the following performance measures would be appropriate for evaluating an investment center, which has responsibility for its revenues, costs, and investment base, but would not be appropriate for evaluating cost, revenue, or profit centers?

  A. A flexible budget.
  B. Variance analysis.
  C. A contribution margin income statement by segment.
  D. Residual income.
  D. Residual income.

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  Explanation

• Question 996:

  According to the International Professional Practices Framework, which of the following statements is true regarding a corporate social responsibility (CSR) program?

  1. Every employee generally has a responsibility for ensuring the success of CSR objectives.

  2. The board has overall responsibility for the effectiveness of internal control processes associated with CSR.

  3. Public reporting on the CSR governance process is expected.

  4. Organizations generally have flexibility regarding what is included in a CSR program.

  A. 1, 2, and 3 only
  B. 1, 2, and 4 only
  C. 1, 3, and 4 only
  D. 2, 3, and 4 only
  B. 1, 2, and 4 only

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  Explanation

• Question 997:

  The general attack strategy adopted by a market challenger that is used by a firm with an advantage in resources is:

  A. Frontal attack.
  B. Bypass attack.
  C. Flank attack.
  D. Encirclement attack.
  D. Encirclement attack.

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  Explanation

  An encirclement attack is used by a challenger with an advantage in resources. It is an assault on multiple marketing fronts.

• Question 998:

  When determining the level of physical controls required for a workstation which of the following factors should be considered?

  A. Ease of use
  B. Value to the business
  C. Intrusion prevention
  D. Ergonomic model
  C. Intrusion prevention

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  Explanation

• Question 999:

  Which of the following strategies would most likely prevent an organization from adjusting to evolving industry market conditions?

  A. Specializing in proven manufacturing techniques that have made the organization profitable in the past.
  B. Substituting its own production technology with advanced techniques used by its competitors.
  C. Forgoing profits over a period of time to gain market share from its competitors.
  D. Using the same branding to sell its products through new sales channels to target new markets.
  A. Specializing in proven manufacturing techniques that have made the organization profitable in the past.

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  Explanation

• Question 1000:

  A cost accounting manager's job involves coordinating and summarizing monthly production department variance reports that are prepared by various staff accountants. The cost accounting manager then provides the relevant variances to colleagues, the production departmental managers. The accounting reports communicated by the cost accounting manager are an example of:

  A. Downward communication.
  B. Hierarchical communication.
  C. Informal communication.
  D. Horizontal communication.
  D. Horizontal communication.

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  Explanation

  Communication can be downward from superior to subordinate), upward from subordinate to superior), or horizontal from one peer to another). It may also be formal or informal. A variance report prepared in the accounting department and sent to production departments is a formal horizontal communication because it occurs among peers laterally through an officially established channel.