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Sample Questions

Free IIA-CIA-Part3 Sample Question 1

A traditional quality control process in manufacturing consists of mass inspection of goods only at the end of a production process. A major deficiency of the traditional control process is that:

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Free IIA-CIA-Part3 Sample Question 2

If a manufacturer has established a limit on the number of defects that are tolerable in the final assembly of its product, which of the following quality control procedures should be employed?

I.Inspect completed goods for compliance with established tolerances.

II. Review sales returns for defects not detected during the final inspection process.

III. Compare materials and machinery specifications with original product designs.

IV. Establish a quality circle that includes management and subordinates to discuss labor efficiency.

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Free IIA-CIA-PART3 Sample Question 3

The most important component of quality control is:

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Free IIA-CIA-Part3 Sample Question 4

Management of a company is attempting to build a reputation as a world-class manufacturer of quality products. Which of the following measures would not be used by the firm to measure quality

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Free IIA-CIA-Part3 Sample Question 5

Which of the following is not an appropriate measure of quality?

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Free IIA-CIA-Part3 Sample Question 6

Which of the following criteria would be most useful to a sales department manager in evaluating the performance of the manager's customer-service group?

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Free IIA-CIA-Part3 Sample Question 7

An example of an internal nonfinancial benchmark is:

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Free IIA-CIA-Part3 Sample Question 8

Quality control circles are now used all over the world. The circles typically consist of a group of five to ten employees who meet regularly. The primary goal of these circles is to:

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Free IIA-CIA-Part3 Sample Question 9

A company with many branch stores has decided to use its best-performing store as a benchmark organization for the purpose of analyzing the accuracy and reliability of branch store financial reporting.
Which one of the following is the most likely measure to be included in a financial benchmark?

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Free IIA-CIA-Part3 Sample Question 10

The management and employees of a large household goods moving company believe that it if became nationally known as adhering to total quality management and continuous improvement, one result would be an increase in the company's profits and market share. What should the company focus onto achieve quality more economically?

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Free IIA-CIA-Part3 Sample Question 11

The cost of scrap, rework, and tooling changes in a product quality cost system is categorized as a (n):

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Free IIA-CIA-Part3 Sample Question 12

The four categories of costs associated with product quality costs are:

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Free IIA-CIA-Part3 Sample Question 13

Which of the following costs of quality is a failure cost?

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Free IIA-CIA-Part3 Sample Question 14

Listed below are costs of quality that a manufacturing company has incurred throughout its operations.


The U.S. dollar amount of the costs of quality classified as prevention costs for the manufacturing firm would be:

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Free IIA-CIA-Part3 Sample Question 15

The costs of quality that are incurred in detecting units of product that do not conform to product specifications are referred to as:

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Free IIA-CIA-Part3 Sample Question 16

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?

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Free IIA-CIA-Part3 Sample Question 17

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

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Free IIA-CIA-Part3 Sample Question 18

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?

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Free IIA-CIA-Part3 Sample Question 19

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:


The following quality cost data were collected for May and June:


Based upon these cost data, the quality cost index:

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Free IIA-CIA-Part3 Sample Question 20

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:

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Free iia-cia-part3 Sample Question 21

Quality costing is similar in service and manufacturing organizations. Nevertheless, the differences between these organizations have certain implications for quality management. Thus,

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