IIA-CIA-Part3 Practice Test

IIA-CIA-Part3 Practice Test practice questions, page 6 of 26, with answer review and explanations.

Question 26

A capital investment project will have a higher net present value, everything else being equal, if it has:

  1. A higher initial investment level.
  2. A higher discount rate.
  3. Cash inflows that are larger in the later years of the life of the project.
  4. Cash inflows that are larger in the earlier years of the life of the project.

Question 27

All of the following are possible explanations for a significant unfavorable material efficiency variance except:

  1. Cutbacks in preventive maintenance.
  2. An inadequately trained and supervised labor force.
  3. A large number of rush orders.
  4. Production of more units than planned for in the master budget.

Question 28

An organization is projecting sales of 100,000 units, at a unit price of $12. Unit variable costs are $7. If fixed costs are $350,000, what is the projected total contribution margin?

  1. $350,000
  2. $500,000
  3. $850,000
  4. $1,200,000

Question 29

When applied to international economics, the theory of comparative advantage proposes that total worldwide output will be greatest when:

  1. Each nation's total imports approximately equal its total exports.
  2. Each good is produced by the nation that has the lowest opportunity cost for that good.
  3. Goods that contribute to a nation's balance-of-payments deficit are no longer imported.
  4. International trade is unrestricted and tariffs are not imposed.

Question 30

A brand manager in a consumer food products organization suspected that several days of the point-of-sale data on the spreadsheet from one grocery chain were missing. The best approach for detecting missing rows in spreadsheet data would be to:

  1. Sort on product identification code and identify missing product identification codes.
  2. Review store identification code and identify missing product identification codes.
  3. Compare product identification codes for consecutive periods.
  4. Compare product identification codes by store for consecutive periods.