IIA-CIA-Part3 Practice Test

IIA-CIA-Part3 Practice Test practice questions, page 4 of 26, with answer review and explanations.

Question 16

Refer to the exhibit. The figure below shows the network diagram for the activities of a large project. What is the shortest number of days in which the project can be completed?

  1. 21 days.
  2. 22 days.
  3. 27 days.
  4. 51 days.

Question 17

Which of the following is a characteristic of just-in-time inventory management systems?

  1. Users determine the optimal level of safety stocks.
  2. They are applicable only to large organizations.
  3. They do not really increase overall economic efficiency because they merely shift inventory levels further up the supply chain.
  4. They rely heavily on high quality materials.

Question 18

The economic order quantity for inventory is higher for an organization that has:

  1. Lower annual unit sales.
  2. Higher fixed inventory ordering costs.
  3. Higher annual carrying costs as a percentage of inventory value.
  4. A higher purchase price per unit of inventory.

Question 19

What must be monitored in order to manage risk of consumer product inventory obsolescence? 1. Inventory balances. 2. Market share forecasts. 3. Sales returns. 4. Sales trends.

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

Question 20

The percentage of sales method, rather than the percentage of receivables method, would be used to estimate uncollectible accounts if an organization seeks to:

  1. Use an aging schedule to more closely estimate uncollectible accounts.
  2. Eliminate the need for an allowance for doubtful accounts.
  3. Emphasize the accuracy of the net realizable value of the receivables on the balance sheet.
  4. Use a method that approximates the matching principle.