IIA Exam IIA-CIA-Part3 Topic 8 Question 3 Discussion

Actual exam question for IIA's IIA-CIA-Part3 exam

Question #: 3
Topic #: 8

Which of the following engagement observations would provide the least motivation for management to amend or replace an existing cost accounting system?

AThe distorted unit cost of a service is 50 percent lower than the true cost, while the true cost is 50 percent higher than the competition's cost.

BThe organization is losing $1,000,000 annually because it incorrectly outsourced an operation based on information from its current system.

CThe cost of rework, hidden by the current system, is 50 percent of the total cost of all services.

D50 percent of total organizational cost has been allocated on a volume basis.

Show Suggested Answer

Suggested Answer: D

by Wynell at May 03, 2022, 09:10 PM

Limited Time Offer

25%

Off

Get Premium IIA-CIA-Part3 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Currently there are no comments in this discussion, be the first to comment!