Pass the IIA CIA Challenge Exam IIA-ACCA Questions and answers with CertsForce

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Viewing questions 136-150 out of questions
Questions # 136:

A multinational organization has multiple divisions that sell their products internally to other divisions. When selling internally, which of the following transfer prices would lead to the best decisions for the organization?

Options:

A.

Full cost


B.

Full cost plus a markup.


C.

Market price of the product


D.

Variable cost plus a markup


Expert Solution
Questions # 137:

The cost to enter a foreign market would be highest in which of the following methods of global expansion?

Options:

A.

Joint ventures.


B.

Licensing.


C.

Exporting.


D.

Overseas production.


Expert Solution
Questions # 138:

Which of the following phases of a business cycle are marked by an underuse of resources?

1. The trough.

2. The peak.

3. The recovery.

4. The recession.

Options:

A.

1 and 3 only


B.

1 and 4 only


C.

2 and 3 only


D.

2 and 4 only


Expert Solution
Questions # 139:

Which of the following factors is considered a disadvantage of vertical integration?

Options:

A.

It may reduce the flexibility to change partners.


B.

It may not reduce the bargaining power of suppliers.


C.

It may limit the organization's ability to differentiate the product.


D.

It may lead to limited control of proprietary knowledge.


Expert Solution
Questions # 140:

Which of the following is not included in the process of user authentication?

Options:

A.

Authorization.


B.

Identification.


C.

Verification.


D.

Validation.


Expert Solution
Questions # 141:

Which of the following is an example of a physical control?

Options:

A.

Providing fire detection and suppression equipment


B.

Establishing a physical security policy and promoting it throughout the organization


C.

Performing business continuity and disaster recovery planning


D.

Keeping an offsite backup of the organization's critical data


Expert Solution
Questions # 142:

Which of the following is useful for forecasting the required level of inventory?

1. Statistical modeling.

2. Information about seasonal variations in demand.

3. Knowledge of the behavior of different business cycles.

4. Pricing models linked to seasonal demand.

Options:

A.

1 and 2 only


B.

2 and 3 only


C.

1, 2, and 3 only


D.

1, 2, 3, and 4


Expert Solution
Questions # 143:

When developing an effective risk-based plan to determine audit priorities, an internal audit activity should start by:

Options:

A.

Identifying risks to the organization's operations.


B.

Observing and analyzing controls.


C.

Prioritizing known risks.


D.

Reviewing organizational objectives.


Expert Solution
Questions # 144:

During the last year, an organization had an opening inventory of $300,000, purchases of $980,000, sales of $1,850,000, and a gross margin of 40 percent. What is the closing inventory if the periodic inventory system is used?

Options:

A.

$170,000


B.

$280,000


C.

$300,000


D.

$540,000


Expert Solution
Questions # 145:

Multinational organizations generally spend more time and effort to identify and evaluate:

Options:

A.

Internal strengths and weaknesses.


B.

Break-even points.


C.

External trends and events.


D.

Internal risk factors.


Expert Solution
Questions # 146:

A supervisor receives a complaint from an employee who is frustrated about having to learn a new software program. The supervisor responds that the new software will enable the employee to work more efficiently and with greater accuracy. This response is an example of:

Options:

A.

Empathetic listening.


B.

Reframing.


C.

Reflective listening.


D.

Dialogue.


Expert Solution
Questions # 147:

One change control function that is required in client/server environments, but is not required in mainframe environments, is to ensure that:

Options:

A.

Program versions are synchronized across the network.


B.

Emergency move procedures are documented and followed.


C.

Appropriate users are involved in program change testing.


D.

Movement from the test library to the production library is controlled.


Expert Solution
Questions # 148:

In which type of business environment are price cutting strategies and franchising strategies most appropriate?

Options:

A.

Embryonic, focused.


B.

Fragmented, decline.


C.

Mature, fragmented.


D.

Competitive, embryonic.


Expert Solution
Questions # 149:

The economic order quantity can be calculated using the following formula:

Question # 149

Which of the following describes how the optimal order size will change if the annual demand increases by 36 percent?

Options:

A.

Decrease by about 17 percent.


B.

Decrease by about 7 percent.


C.

Increase by about 7 percent.


D.

Increase by about 17 percent.


Expert Solution
Questions # 150:

Which of the following is an example of an application system control?

Options:

A.

Data values fall within a prescribed range.


B.

Error listings are generated and promptly remediated.


C.

Report distribution is restricted to authorized personnel.


D.

Field amounts contain an upper or lower limit.


Expert Solution
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