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

IIA IIA-CIA-PART3 Online Questions & Answers

• Question 1121:

  Which of the following statements is true regarding a project life cycle?

  A. Risk and uncertainty increase over the life of the project
  B. Costs and staffing levels are typically high as the project draws to a close
  C. Costs related to making changes increase as the project approaches completion
  D. The project life cycle corresponds with the life cycle of the product produced by or modified by the project
  C. Costs related to making changes increase as the project approaches completion

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  Explanation

• Question 1122:

  A corporation is performing research to determine the feasibility of entering the truck rental industry.The decision to enter the market is most likely to be deterred if:

  A. Buyer switching costs are high.
  B. Buyers view the product as differentiated.
  C. The market is dominated by a small consortium of buyers.
  D. Buyers enjoy large profit margins.
  C. The market is dominated by a small consortium of buyers.

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  Explanation

  When purchasing power is concentrated in a few buyers or when buyers are well organized, their bargaining power is greater. This effect is reinforced when sellers are in a capitalintensive industry, such as trucking.

• Question 1123:

  Which of the following is always true regarding the use of encryption algorithms based on public key infrastructure (PKI)?

  A. PKI uses an independent administrator to manage the public key.
  B. The public key is authenticated against reliable third-party identification.
  C. PKI's public accessibility allows it to be used readily for e-commerce.
  D. The private key uniquely authenticates each party to a transaction.
  D. The private key uniquely authenticates each party to a transaction.

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  Explanation

• Question 1124:

  Which of the following is an example of a smart device security control intended to prevent unauthorized users from gaining access to a device's data or applications?

  A. Anti-malware software.
  B. Authentication.
  C. Spyware.
  D. Rooting.
  B. Authentication.

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  Explanation

• Question 1125:

  Which of the following is improved by the use of smart devices?

  A. Version control.
  B. Privacy.
  C. Portability.
  D. Secure authentication
  C. Portability.

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  Explanation

• Question 1126:

  Firms in a fragmented industry have insignificant market shares and little influence on such matters as market price and total output. A likely economic cause of this fragmentation is the existence of:

  A. A learning curve effect.
  B. Diseconomies of scale.
  C. High entry barriers.
  D. Low exit barriers.
  B. Diseconomies of scale.

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  Explanation

  Important diseconomies of scale may favor fragmentation. For example, small, flexible firms have an advantage when the following needs are important:quick responses to style changes, the maintenance of low overhead, customization of a diverse product line to the special requirements of particular customers, substantial creative content in the product, individualized personal service, and local contacts and image.

• Question 1127:

  The following transactions and events occurred during the year:

  1. $300,000 of raw materials were purchased, of which $20,000 were returned because of defects

  2. $600,000 of direct labor costs were incurred.

  3. S750.000 of manufacturing overhead costs were incurred.

  What is the organization's cost of goods sold for the year?

  A. $1.480.000
  B. $1 500 000
  C. $1,610.000
  D. $1650 000
  B. $1 500 000

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  Explanation

• Question 1128:

  Which of the following is a favorable condition for a firm competing in a profitable, expanding industry?

  A. The firm does not have a strong customer base.
  B. A few suppliers who can restrict supply.
  C. Competitors find it difficult to acquire the firm's customers.
  D. The firm has high costs relative to other firms in the industry.
  C. Competitors find it difficult to acquire the firm's customers.

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  Explanation

  A firm that has successfully differentiated its products through developing a desirable image, better services, cost leadership, the features of the product, or other means is in a favorable competitive position. Competitors find it difficult to acquire the firm's customers, for example, by price cutting. The reason is that the firm's products are perceived to have few substitutes, and brand loyalty is high. Furthermore, barriers to entry are favorable to the firm. These barriers deter competitors from entering the market. Existing firms can increase market share and emphasize cutting costs and increasing value.

• Question 1129:

  The creation of regional free trade zones is a global phenomenon. Trade barriers are lowered in these areas, and other steps are taken to promote economic cooperation. For example, a common currency has been adopted by the nations of:

  A. NAFTA.
  B. Mercosul.
  C. APEC.
  D. The European Union.
  D. The European Union.

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  Explanation

  The European Union (Eli) is a collection of 27 European nations that have lowered trade barriers among member states, and most of the nations share a common currency and trade policy. The euro is the common currency of the European Union.

• Question 1130:

  Which of the following should an organization consider when developing strategic objectives for its business processes?

  1. Contribution to the success of the organization.

  2. Reliability of operational information.

  3. Behaviors and actions expected of employees.

  4. How inputs combine with outputs to generate activities.

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

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  Explanation