Financial The Certified Internal Auditor Part 3 CIA-III Dumps in PDF

Free Financial CIA-III Real Questions (page: 4)

Listed below are selected line items from the cost-of-quality report for Company B for last month Category:


What is Company B's total prevention and appraisal cost for last month?

  1. US$786
  2. US$1,154
  3. US$1,940
  4. US$2,665

Answer(s): C

Explanation:

Answer C is correct. Prevention costs are incurred to prevent defects from occurring. An example is equipment maintenance. Appraisal costs are incurred to detect defective output during and after the production process. An example is product testing. Thus, total prevention and appraisal cost for the month equals US $1,940 (US$1,154 + US $786).



All of the following are generally included in a cost-of-quality report except:

  1. Warranty claims.
  2. Design engineering.
  3. Supplier evaluations.
  4. Lost contribution margin.

Answer(s): D

Explanation:

A cost-of-quality report includes most costs related to quality, specifically the costs of prevention, appraisal, internal failure, and external failure.



In Year 2, a manufacturing company instituted a total quality management (TQM) program producing the following report:

On the basis of this report, which one of the following statements is most likely true?

  1. An increase in prevention and appraisal costs resulted in a higher quality product and therefore resulted in a decrease in failure costs.
  2. An increase in inspection costs was solely responsible for the decrease in quality costs.
  3. Quality costs, such as scrap and rework, decreased by 48%.
  4. Quality costs, such as returns and repairs under warranty, decreased by 40%.

Answer(s): A

Explanation:

Answer A is correct. Prevention and appraisal costs increased substantially, but internal and external failure costs decreased. Thus, the soundest conclusion is that the increase in prevention and appraisal costs resulted in a higher-quality product.



Quality cost indices are often used to measure and analyze the cost of maintaining a given level of quality. One example of a quality cost index, which uses a direct labor base, is computed as:


Based upon these cost data, the quality cost index:

  1. Decreased four points from May to June.
  2. Was unchanged from May to June.
  3. Increased 10 points from May to June.
  4. Decreased 10 points from May to June.

Answer(s): A

Explanation:

The index for May was 40 [(US $4,000 + $6,000 + $12,000 + $14,000) + $90,000], and the index for June was 36 [(US $5,000 + $5,000 + $15,000 + $11.000) + $100,000].



Quality cost indices are often used to measure and analyze the cost of maintaining or improving the level of quality. Such indices are computed by dividing the total cost of quality over a given period by some measure of activity during that period (for example, sales dollars). The following cost data are available for a company for the month of March. The company's quality cost index is calculated using total cost of quality divided by sales dollars.



The quality cost index for March is:

  1. 7.5
  2. 6.5
  3. 22.0
  4. 5.9

Answer(s): A

Explanation:

The total cost of quality equals the sum of prevention costs (quality planning), appraisal costs (inspection and testing), internal failure costs (scrap and rework), and external failure costs (customer complaints and returns), or US $30,000 ($2,800 + $6,400 + $16,800 + $4,000). Thus, the quality cost index for March is 7.5 [(US $30,000 - US $400,000) x 100].



Share your comments for Financial CIA-III exam with other users:

N
Neetu
6/22/2023 8:41:00 AM

please upload the dumps, real need of them

M
Mark
10/24/2023 1:34:00 AM

any recent feeedback?

G
Gopinadh
8/9/2023 4:05:00 AM

question number 2 is indicating you are giving proper questions. observe and change properly.

S
Santhi
1/1/2024 8:23:00 AM

passed today.40% questions were new.litwere case study,lots of new questions on afd,ratelimit,tm,lb,app gatway.got 2 set series of questions which are not present here.questions on azure cyclecloud, no.of vnet/vms required for implimentation,blueprints assignment/management group etc

R
Raviraj Magadum
1/12/2024 11:39:00 AM

practice test

S
sivaramakrishnan
7/27/2023 8:12:00 AM

want the dumps for emc content management server programming(cmsp)

A
Aderonke
10/23/2023 1:52:00 PM

brilliant and helpful

A
Az
9/16/2023 2:43:00 PM

q75. azure files is pass

K
ketty
11/9/2023 8:10:00 AM

very helpful

S
Sonail
5/2/2022 1:36:00 PM

thank you for these questions. it helped a lot.

S
Shariq
7/28/2023 8:00:00 AM

how do i get the h12-724 dumps

A
adi
10/30/2023 11:51:00 PM

nice data dumps

E
EDITH NCUBE
7/25/2023 7:28:00 AM

answers are correct

R
Raja
6/20/2023 4:38:00 AM

good explanation

B
BigMouthDog
1/22/2022 8:17:00 PM

hi team just want to know if there is any update version of the exam 350-401

F
francesco
10/30/2023 11:08:00 AM

helpful on 2017 scrum guide

A
Amitabha Roy
10/5/2023 3:16:00 AM

planning to attempt for the exam.

P
Prem Yadav
7/29/2023 6:20:00 AM

pleaseee upload

A
Ahmed Hashi
7/6/2023 5:40:00 PM

thanks ly so i have information cia

M
mansi
5/31/2023 7:58:00 AM

hello team, i need sap qm dumps for practice

J
Jamil aljamil
12/4/2023 4:47:00 AM

it’s good but not senatios based

C
Cath
10/10/2023 10:19:00 AM

q.119 - the correct answer is b - they are not captured in an update set as theyre data.

P
P
1/6/2024 11:22:00 AM

good matter

S
surya
7/30/2023 2:02:00 PM

please upload c_sacp_2308

S
Sasuke
7/11/2023 10:30:00 PM

please upload the dump. thanks very much !!

V
V
7/4/2023 8:57:00 AM

good questions

T
TTB
8/22/2023 5:30:00 AM

hi, could you please update the latest dump version

T
T
7/28/2023 9:06:00 PM

this question is keep repeat : you are developing a sales application that will contain several azure cloud services and handle different components of a transaction. different cloud services will process customer orders, billing, payment, inventory, and shipping. you need to recommend a solution to enable the cloud services to asynchronously communicate transaction information by using xml messages. what should you include in the recommendation?

G
Gurgaon
9/28/2023 4:35:00 AM

great questions

W
wasif
10/11/2023 2:22:00 AM

its realy good

S
Shubhra Rathi
8/26/2023 1:12:00 PM

oracle 1z0-1059-22 dumps

L
Leo
7/29/2023 8:48:00 AM

please share me the pdf..

A
AbedRabbou Alaqabna
12/18/2023 3:10:00 AM

q50: which two functions can be used by an end user when pivoting an interactive report? the correct answer is a, c because we do not have rank in the function pivoting you can check in the apex app

R
Rohan Limaye
12/30/2023 8:52:00 AM

best to practice

AI Tutor 👋 I’m here to help!