A multinational organization has multiple divisions that sell their products internally to other divisions. When selling internally, which of the following transfer prices would lead to the best decisions for the organization?

• A.Full cost plus a markup.
• B.Market price of the product
• C.Variable cost plus a markup
• D.Full cost

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Which stage in the industry life cycle is characterized by many different product variations?

• A.Introduction.
• B.Decline.
• C.Maturity.
• D.Growth.

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Which of the following examples demonstrates that the internal audit activity uses descriptive analytics in its engagements?

• A.An internal auditor extracted sales data to a spreadsheet and applied judgmental analysis for sampling.
• B.An internal auditor broke down a complex process into smaller pieces to make it more understandable.
• C.An internal auditor classified solar panel sales by region and discovered unsuccessful sales representatives.
• D.An internal auditor analyzed electricity production and sales interim reports and compiled a risk assessment.

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According to the Standards, the internal audit activity must evaluate risk exposures relating to which of the following when examining an organization's risk management process?
1) Organizational governance.
2) Organizational operations.
3) Organizational information systems.
4) Organizational structure.

• A.1, 2, and 3 only
• B.1, 2, and 4 only
• C.2 and 4 only
• D.1 and 3 only

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Which of the following is a key characteristic of a zero-based budget?

• A.A zero-based budget is prepared each year and requires each item of expenditure to be justified.
• B.A zero-based budget uses input from lower-level and middle-level managers to formulate budget plans.
• C.A zero-based budget provides estimates of costs that would be incurred under different levels of activity.
• D.A zero-based budget maintains focus on the budgeting process.

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