IIA-CIA-Part3 Practice Test

IIA-CIA-Part3 Practice Test practice questions, page 10 of 26, with answer review and explanations.

Question 46

An organization produces two products, X and Y. The materials used for the production of both products are limited to 500 kilograms (kg) per month. All other resources are unlimited and their costs are fixed. Individual product details are as follows: Product X - Product Y - Selling price per unit - $10 $13 Materials per unit (at $1/kg) 2 kg 6 kg Monthly demand - 100 units 120 units In order to maximize profit, how much of product Y should the organization produce each month?

  1. 50 units.
  2. 60 units.
  3. 100 units.
  4. 120 units.

Question 47

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.

  1. 1 and 2 only
  2. 2 and 3 only
  3. 1, 2, and 3 only
  4. 1, 2, 3, and 4

Question 48

Which of the following standards would be most useful in evaluating the performance of a customer-service group?

  1. The average time per customer inquiry should be kept to a minimum.
  2. Customer complaints should be processed promptly.
  3. Employees should maintain a positive attitude when dealing with customers.
  4. All customer inquiries should be answered within seven days of receipt.

Question 49

A small furniture-manufacturing firm with 100 employees is located in a two-story building and does not plan to expand. The furniture manufactured is not special- ordered or custom-made. The most likely structure for this organization would be:

  1. Functional departmentalization.
  2. Product departmentalization.
  3. Matrix organization.
  4. Divisional organization.

Question 50

When writing a business memorandum, the writer should choose a writing style that achieves all of the following except:

  1. Draws positive attention to the writing style.
  2. Treats all receivers with respect.
  3. Suits the method of presentation and delivery.
  4. Develops ideas without overstatement.