Free CIA Exam Braindumps
Certified Internal Auditor Exam Questions 756–760 (page: 153)

Updated On: 9-Feb-2026

Which of the following is a false statement about cost-based pricing?

  1. Cast-based price should cover casts and provide the desired return an investment.
  2. A commonly used cost-plus pricing formula is to all a markup percentage to the total cost.
  3. Variable casts may not be used as the basis for casts.
  4. A cost-plus price equals the cost plus a markup.

Answer(s): C

Explanation:

Cast-based pricing begins with a cast determination followed by setting a price that will recover the value chain costs and provide the desired return on investment. A cost-plus price equals the cost plus a markup. Cost may be defined in many ways. F last companies use either absorption manufacturing cost or total cost when calculating the price. Variable costs may be used as the basis for cost, but then fined costs must be covered by the markup.



Evaluating performance is not done to

  1. Determine the amount of nondiscriminatory benefits that each employee deserves.
  2. Assess the available human resources of the firm.
  3. Motivate the employees.
  4. Determine which employees deserve salary increases.

Answer(s): A

Explanation:

Evaluations reinforce accomplishments, help in assessing employee strengths and weaknesses, provide motivation, assist in employee development, permit the organization to assess its human resource needs, and serve as a basis for wage increases. F- Jondiscriminatary benefits are given to everyone in the organization in equal amounts, regardless of title, pay, or achievement of objectives.



When a manager generalizes from the evaluation of one or a few traits to the employee's total performance, s)he has made

  1. A judgmental evaluation.
  2. An evaluation subject to the halo effect.
  3. A projection.
  4. An objective evaluation

Answer(s): B

Explanation:

The halo effect occurs when the appraiser judges one or a few employee traits and carries over this judgment to the evaluation of the employee's other traits.The converse of the halo effect is the horn effect. It occurs when the manager allows one negative trait to influence the evaluation of other traits.



A manager discovers by chance that a newly hired employee has strong beliefs that are very different from the manager's and from those of most of the other employees. The manager's best course of action would be to

  1. Facilitate the reassignment of the new hire as quickly as possible before this situation becomes disruptive.
  2. Ask the rest of the team for their reaction and act according to the group consensus.
  3. Take no action unless the new hire's behavior is likely to cause harm to the organization.
  4. Try to counsel the new hire into more reasonable beliefs.

Answer(s): C

Explanation:

The only legitimate grounds on which the supervisor may take action is the employee's behavior. Personal beliefs, such as those an religious and political matters, cannot be the basis of personnel actions. Discrimination an the basis of personal beliefs could expose the organization to legal action.



A company allows each of its departments to develop its own system for evaluating performance. How should the personnel director communicate appraisal information to a new employee?

  1. Presenting anything that is pertinent to the listener's situation.
  2. Providing an overview of all systems within the company.
  3. Describing how her own performance is evaluated.
  4. Discussing each department's evaluation system in detail.

Answer(s): A

Explanation:

The personnel director should tailor the discussion to the listener by describing how the employee's department evaluates performance and what is expected of him/her. The director should also obtain feedback from the employee to determine if everything is clearly understood.



Viewing page 153 of 342
Viewing questions 761 - 765 out of 1702 questions


Post your Comments and Discuss IIA CIA exam prep with other Community members:

AI Tutor AI Tutor 👋 I’m here to help!