IIA-CIA-PART3 Online Practice Questions and Answers

Gray market activity is in essence a form of arbitrage. To prevent this activity by their distributors, multinational firms:

I. Raise prices charged to lower-cost distributors.

II. Police the firms' distributors.

III.

Change the product.

A.

I only.

B.

I and II only.

C.

II and Ill only.

D.

I, II, and Ill.

Which of the following is not an effective principle for guiding a manager's use of leadership techniques?

A. Serve as a model of the behavior expected from others.

B. Value accountability.

C. Value differences.

D. Follow written procedures at all times.

Intentional stimulation of conflict can be triggered by:

I. Making changes to the organizational structure

II. Hiring new employees with different values, attitudes, and backgrounds

III.

Assigning an employee the role of devil's advocate to oppose the majority views

A.

I only.

B.

I, II, and Ill.

C.

I and Ill only.

D.

II only.

A reasonable BATNA (best alternative to a negotiated agreement) protects against bad decisions caused by the following:

I. Framing error

II. Escalation of commitment

III.

Overconfidence

A.

I and Ill only.

B.

I, II, and Ill.

C.

I only.

D.

II and Ill only.

When planning for successful negotiations, the negotiator should:

A. Understand the implications for both sides if the negotiation fails.

B. Concentrate solely on the issues in the negotiation at hand.

C. Not deviate from stated positions.

D. Depend on the initial research prepared for the negotiation.

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?

A. $170,000

B. $280,000

C. $300,000

D. $540,000

Maintenance cost at a hospital was observed to increase as activity level increased. The following data was gathered: Activity Level Maintenance Cost Month Patient Days Incurred January 5,600 $7,900 February 7,100 $8,500 March 5,000 $7,400 April 6,500 $8,200 May 7,300 $9,100 June 8,000 $9,800

If the cost of maintenance is expressed in an equation, what is the independent variable for this data?

A. Fixed cost.

B. Variable cost.

C. Total maintenance cost.

D. Patient days.

Which of the following IT strategies is most effective for responding to competitive pressures created by the marketplace?

A. Promote closer linkage between organizational strategy and information.

B. Provide users with greater online access to information systems.

C. Enhance the functionality of application systems.

D. Expand the use of automated controls.

The board of directors wants to implement an incentive program for senior management that is specifically tied to the long-term health of the organization.

Which of the following methods of compensation would be best to achieve this goal?

A. Commissions.

B. Stock options.

C. Gain-sharing bonuses.

D. Allowances.

Which of the following statements is true regarding change management?

A. The degree of risk associated with a proposed change determines whether the change request requires authorization.

B. Program changes generally are developed and tested in the production environment.

C. Changes are only required by software programs.

D. To protect the production environment, changes must be managed in a repeatable, defined, and predictable manner.