IIA IIA-CIA-PART4 Online Practice Questions and Exam Preparation

IIA IIA-CIA-PART4 Online Questions & Answers

• Question 431:

  Job enlargement is typified by:

  A. Horizontal loading of the job.
  B. Vertical loading of the job.
  C. Increased worker control of tasks.
  D. More rapid performance feedback.
  A. Horizontal loading of the job.

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  Job enlargement is a quantitative horizontal) extension of the job. It does not necessarily involve any greater worker control, responsibility, or challenge. An example is job rotation through assignment to duties requiring similar skills.

• Question 432:

  Advantages of decentralization include all of the following except:

  A. Decisions are more easily made.
  B. Managers' motivation increases.
  C. Greater uniformity in decisions.
  D. Problems can be dealt with on the spot.
  C. Greater uniformity in decisions.

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  Organizational design should achieve a balance between centralization and decentralization. The main benefits of centralization are more effective control and reduced costs through resource sharing. The main benefits of decentralization are flexibility and adaptability that permit a rapid response to changes in circumstances. Accordingly, increased uniformity in decision making is an advantage of centralization. It reflects the benefit of more effective control.

• Question 433:

  A structural characteristic of an emerging industry is:

  A. Strategic uncertainty.
  B. Customers are sophisticated.
  C. Technological uncertainty has been overcome.
  D. Industry development is unlimited.
  A. Strategic uncertainty.

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  Strategic uncertainty arises because effective strategies have not yet been identified. Hence, firms are experimenting with product features, production methods, marketing approaches, etc. Moreover, competitive intelligence is necessarily poor because competitors have not been identified and industry sales and other data are not available.

• Question 434:

  A firm most likely will adopt a preemptive capacity expansion strategy when:

  A. Demand uncertainty is low.
  B. Large competitors have signaled their intention to expand.
  C. Excess industry capacity exists.
  D. Cash reserves are low.
  A. Demand uncertainty is low.

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  The extent of uncertainty about future demand is a crucial variable in determining the nature of industry expansion. For example, if uncertainty is great, firms willing to take greater risks because of their large cash resources or strategic stake in the industry will act first. Other firms will await events. When demand uncertainty is low, firms will tend to adopt a strategy of preemption, usually with strong market signals, to forestall competitors' expansion plans. Excess preemption leads to excess industry capacity because firms overestimate their competitive strengths, misunderstand market signals, or fail to accurately assess competitors' intentions.

• Question 435:

  The most likely span of control to apply over 14 data-entry clerks who do essentially the same job and work in the same office would be:

  A. Close.
  B. Narrow.
  C. Moderate.
  D. Wide.
  D. Wide.

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  In any situation, there are underlying variables that influence the number of subordinates a manager can supervise. In general, if jobs are similar, procedures are standardized, and physical dispersion is minimized, a wide span of control is most effective.

• Question 436:

  Which of the following is generally true regarding a manager's span of control?

  A. Narrow spans of control are typically found in flat organizations, those with few hierarchical levels.
  B. An organization with narrow spans of control needs more managers than those with wide spans.
  C. Wider spans of control mean higher administrative expense and less self-management.
  D. Wider spans of control help ensure good internal controls and policy compliance throughout an organization.
  B. An organization with narrow spans of control needs more managers than those with wide spans.

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  Span of control span of management or span of authority) is an upper limit to the number of people who can be effectively and efficiently supervised by one person. Narrow spans of control mean that the ratio of those supervised subordinates) to those doing the supervision managers) is lower. Hence, more managers are required.

• Question 437:

  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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  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.

• Question 438:

  A staff auditor is technically outstanding and works well with audit clients but is not good at leading an audit team. To improve the auditor's performance, the auditor should be:

  A. Put in charge of the biggest project; the only way to learn is by performing the task.
  B. Put in charge of small projects with set milestones and a fully trained staff.
  C. Sent to school for management theory classes.
  D. Left alone and given assignments that accentuate personal strengths and avoid personal weaknesses.
  B. Put in charge of small projects with set milestones and a fully trained staff.

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  The auditor can learn to lead small teams, which will in turn prepare him or her to lead larger projects.

• Question 439:

  Which of the following is a benefit of implementing the achievement-oriented leader approach rather than the directive leader approach?

  A. Employee development is enhanced.
  B. The structured environment allows employees to better achieve the organization's goals.
  C. Closer supervision is provided for employees who perform better in a structured work atmosphere.
  D. Employees have more opportunities to develop creativity and meet challenges.
  D. Employees have more opportunities to develop creativity and meet challenges.

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  The benefits to the company of the achievement-oriented leader approach include greater employee confidence and commitment, more employee decision making, increased employee creativity, more challenging objectives, and reduced supervision for employees who work best independently.

• Question 440:

  Keeping a conflict from surfacing at all is an example of following which conflict management strategy?

  A. Avoidance.
  B. Defusion.
  C. Containment.
  D. Confrontation
  A. Avoidance.

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  An avoidance strategy aims to resolve the conflict by ignoring it or imposing a solution. It is appropriate if the conflict is trivial or if quick action is needed to prevent the conflict from arising.