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Q346. To ensure privacy in a public key encryption system, knowledge of which of the following keys 

would be required to decode the received message? 

I. Private 

II.

 Public 

A. 

I. 

B. 

II. 

C. 

Both l and ll. D Neither I nor IL 

Answer:

Explanation: 

In a public key system, the public key is used to encrypt the message prior to transmission, whereas the private key is needed to decrypt decode) the message. 


Q347. The average labor cost per unit for the first batch produced by a new process is US $120. The cumulative average labor cost after the second batch is US $72 per product. Using a batch size of 100 and assuming the learning curve continues, the total labor cost of four batches will be: 

A. US $4,320 

B. US $10,368 

C. US $2,592 

D. US $17,280 

Answer:

Explanation: 

The learning curve reflects the increased rate at which people perform tasks as they gain experience. The time required to perform a given task becomes progressively shorter. 

Ordinarily, the curve is expressed in a percentage of reduced time to complete a task for each doubling of cumulative production. One common assumption in a learning curve model is that the cumulative average time and labor cost) per unit is reduced by a certain percentage each time production doubles. Given a US $120 cost per unit for the first 100 units and a US $72 cost per unit when cumulative production doubled to 200 units, the learning curve percentage must be 60% US $72 - $120). If production is again doubled to 400 units four batches), the average unit labor cost should be US $43.20 $72 x 60%). Hence, total labor cost for 400 units is estimated to be US $17,280 400 $43.20). 


Q348. The expected time of the critical path is: 

A. 12.0 days. 

B. 13.0 days. 

C. 11.5 days. 

D. 11.0 days. 

Answer:

Explanation: 

The critical path is the longest path. The longest path in the diagram is A-D-E, which requires 13 days 5.5 + 7.5) based on expected times. The network diagram and the corresponding activity cost chart for a manufacturing project at Networks, Inc. are presented below. The numbers in the diagram are the expected times in days) to perform each activity in the project. 


Q349. The gross domestic product GDP) does not measure: 

A. National economic performance. 

B. Market-oriented activity. 

C. Improvements in product quality. 

D. The size of national output. 

Answer:

Explanation: 

GDP is the total market value of all final goods and services produced within the boundaries of the 

U.S. in one year, without regard to ownership of the means of production. It is a monetary 

measure of quantitative data, not qualitative characteristics. 

Thus, improvements in product quality are not measured by GDP. 


Q350. Using a telecommunications provider affects in-house networks. To prepare for changes resulting from enhanced external network services, management should 

A. Optimize in-house networks to avoid bottlenecks that would limit the benefits offered by the telecommunications provider. 

B. Plan for rapid implementation of new capabilities in anticipation of ready acceptance of the new technology. 

C. Downsize the company's disaster recovery plan to recognize the increasing role of the telecommunications provider. 

D. Enhance the in-house network management to minimize dependence on the telecommunications provider for network management. 

Answer:

Explanation: 

To prepare the company for changes resulting from the enhanced external network services, management should take appropriate action. A number of bottlenecks may limit the benefits that can be derived from the external network. For example, conversion from analog to digital technology is necessary to achieve rapid improvements in bandwidth and speed and to improve access to telecommunications services. Furthermore, applications, systems software, and communications protocols must be able to process information in a format and in a manner acceptable to end users. Communications security also has heightened importance as greater amounts of data are transmitted from remote sites. 


Q351. Which of the following is a characteristic of total quality management (TQM)? 

A. Management by objectives. 

B. On-the-job training by other workers. 

C. Quality by final inspection. 

D. Education and self-improvement. 

Answer:

Explanation: 

TQM is the continuous pursuit of quality in every aspect of organizational activities. One of the means of achieving this is through employee training and empowerment. 


Q352. ttacks on computer networks may take many forms. Which of the following uses the computers of innocent parties infected with Trojan horse programs? 

A. A distributed denial-of-service attack. 

B. A man-in-the-middle attack. 

C. A brute-force attack. 

D. A password-cracking attack. 

Answer:

Explanation: 

A denial-of-service DOS) attack is an attempt to overload a system e.g., a network or Web server) with false messages so that it cannot function a system crash). A distributed DOS attack comes from multiple sources, for example, the machines of innocent parties infected by Trojan horses. When activated, these programs send messages to the target and leave the connection open. A DOS may establish as many network connections as possible to exclude other users, overload primary memory, or corrupt file systems. 


Q353. The halo effect may diminish the accuracy of the evaluation of employees. Which of the following is an example? 

A. A manager rates some employees as very good and some as very poor. 

B. A manager's judgment of one positive trait affects his/her rating of other traits. 

C. The most recent behavior overshadows overall performance. 

D. All personnel who work together are rated within the same narrow range. 

Answer:

Explanation: The halo effect diminishes the accuracy of an evaluation when a manager's judgment on one positive trait affects the rating of other traits. 


Q354. The best approach for minimizing the likelihood of software incompatibilities leading to unintelligible messages is for a company and its customers to: 

A. Acquire their software from the same software vendor. 

B. Agree to synchronize their updating of EDI-related software. 

C. Agree to use the same software in the same ways indefinitely. 

D. Each write their own version of the EDI-related software. 

Answer:

Explanation: 

EDI entails the exchange of common business data converted into standard message formats. Thus, two crucial requirements are that the participants agree on transaction formats and that translation software be developed to convert messages into a form understandable by other companies. Thus, if one company changes its software, its trading partners must also do so. 


Q355. While auditing a marketing department, the internal auditor discovered that the product life cycle model was used to structure the marketing mix. Under such a philosophy, the opportunity for cost reductions would be greatest in which stage of the life cycle? 

A. Introduction stage. 

B. Growth stage. 

C. Maturity stage. 

D. Decline stage. 

Answer:

Explanation: 

During the growth stage, the opportunity for cost reductions is at its maximum because production volume is increasing at a high rate. Thus, fixed costs are being spread over more units of production, and the benefits of the learning curve are being realized. 


Q356. One drawback of business process reengineenng (BPR), sometimes referred to as business 

process analysis, is: 

A. Improved efficiency in the business processes analyzed. 

B. Excess of cost over the benefit. 

C. Reduction of operational efficiency. 

D. Employee resistance to change. 

Answer:

Explanation: 

Business process reengineering (BPR), or business process analysis, involves process innovation and process redesign. Instead of improving existing procedures, it finds new ways of doing things. One major drawback of BPR is that employees may be resistant due to fear of layoffs, being replaced, or insecurity about new required skills or tasks that the employee now has to perform. 


Q357. A chief executive officer (CEO) believes that a major competitor may be planning a new campaign. The CEO sends a questionnaire to key personnel asking for original thinking concerning what the new campaign may be. The CEO selects the best possibilities and then sends another questionnaire asking for the most likely option. The process employed by the CEO is called the: 

A. Least squares technique 

B. Delphi technique. 

C. Maximum likelihood technique. 

D. Optimizing of expected payoffs. 

Answer:

Explanation: 

The Delphi technique is a forecasting or decision-making approach that attempts to avoid groupthink (the tendency of individuals to conform to what they perceive to be the consensus). The technique allows only written, anonymous communication among group members. Each member takes a position on the problem at hand. A summary of these positions is communicated to each member. The process is repeated for several iterations as the members move toward a consensus Thus, the Delphi technique is a qualitative, not quantitative, technique. 


Q358. Which line segment represents the length of time to consume the total quantity of materials ordered? 

A. DE. 

B. BC. 

C. AC. 

D. AE. 

Answer:

Explanation: 

Time is shown along the axis. The line segment AC depicts the time to consume an entire order to reduce the inventory to the safety stock). 


Q359. Which of the following is an example of an efficiency measure? 

A. The rate of absenteeism. 

B. The goal of becoming a leading manufacturer. 

C. The number of insurance claims processed per day. 

D. The goal of increasing market share. 

Answer:

Explanation: 

The number of insurance claims processed per day is a typical measure used in a balanced scorecard. It relates to the critical success factor of productivity. This factor is based on an input- output efficiency) relationship. An organizational structure is efficient if it facilitates the accomplishment of organizational objectives with minimum resources and fewest unsought consequences. An efficient organizational structure maximizes output for a given amount of input. Thus, an efficiency measure compares input with output. Insurance claims processed per day relates output claims processed) to input a day's work). 


Q360. Which of the following is a definition of predatory pricing? 

A. Pricing products below cost to destroy competitors. 

B. Pricing products at different prices for different customers. 

C. Conspiring to restrict output and set artificially high prices. 

D. Selling below cost in other countries. 

Answer:

Explanation: 

Predatory pricing is the practice of pricing products below cost to destroy competitors. A price is predatory if it is below an appropriate measure of costs, and the seller has a reasonable prospect 

of recovering its losses in the future through higher prices or greater market share.