IIA Exam IIA-CIA-Part3 Topic 12 Question 60 Discussion

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

Question #: 60
Topic #: 12

[All IIA-CIA-Part3 Questions]

Which of the following performance measures includes both profits and investment base?

AResidual income

BA flexible budget

CVariance analysis.

DA contribution margin income statement by segment.

Show Suggested Answer

Suggested Answer: A

by Nichelle at Apr 20, 2023, 06:44 PM

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Willow

2 months ago

Variance analysis? Sounds like the accountant's version of a Choose Your Own Adventure book.

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Luther

18 days ago

D) A contribution margin income statement by segment.

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Shaniqua

27 days ago

C) Variance analysis.

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Amie

28 days ago

B) A flexible budget

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Sherrell

1 months ago

A) Residual income

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Omega

2 months ago

The contribution margin income statement? That's about as useful as a chocolate teapot in this case.

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Joanne

2 months ago

A flexible budget? Really? That's like trying to fit a square peg in a round hole. Not a chance.

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Lauryn

2 months ago

I thought variance analysis was the one that looked at both profits and investment. Oh well, can't win 'em all.

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Ammie

1 months ago

C) Variance analysis focuses on differences between actual and budgeted amounts.

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Luisa

1 months ago

B) A flexible budget is important for planning and control.

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Sanjuana

1 months ago

A) Residual income includes both profits and investment base.

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Ligia

3 months ago

Residual income definitely includes both profits and investment base. Nailed it!

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Rose

2 months ago

I agree, residual income is a great performance measure that considers both profits and the investment base.

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Jimmie

2 months ago

Yes, you're right! Residual income takes into account both profits and the investment made.

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Dana

2 months ago

Residual income definitely includes both profits and investment base. Nailed it!

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Arlie

3 months ago

I'm not sure, but I think it makes sense that residual income would be the right choice.

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Loreta

3 months ago

I agree with Craig, residual income considers both profits and investment base.

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Craig

4 months ago

I think the answer is A) Residual income.

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