[Anonymous]

For anyone who’s interested or is taking BEC soon and wants to practice. We did this in the Q2 FAR group and it was really helpful, especially for memorizing formulas, which as we all know, BEC is heavy with. Answer or ask your own question! Just be sure to come back on here and let the person who answered know if they were right or wrong 🙂

I’ll start it off:

What is the formula to calculate Marginal Propensity to Consume (MPC)?

[Anonymous]

@MOD Answer to second question is D, calculated as follows:

By product SV – Additional ByProduct Costs = 30,000 – (10,000 + 15,000) = 5,000

Ttl Production Costs – NRV of ByProduct = Net Production Cost – Ending Inv. Gasoline = Cost of Gasoline Sales

120,000 – 5,000 = 115,000 – 15,000 = 100,000.

[Anonymous]

Also, Becker has all of 1/2 a page on by products and no actual example in the text. They cover joint costing plenty though.

[Anonymous]

What are the elements/components of the Internal Environment within the ERM framework?

[M.O.D.]

COSO ERM:

The internal environment reflects the entity's:

risk management philosophy

risk appetite

integrity

ethical values

overall environment

(sets the tone for the entity)

BA Mathematics, UC Berkeley
Certificates in CPA and EA preparation, College of San Mateo
CMA I 420, II 470
FAR 91, AUD Feb 2015 (Gleim self-study)

[M.O.D.]

What is the overhead application rate formula?

BA Mathematics, UC Berkeley
Certificates in CPA and EA preparation, College of San Mateo
CMA I 420, II 470
FAR 91, AUD Feb 2015 (Gleim self-study)

[Anonymous]

@MOD you got it!

[Anonymous]

Standard DLH (or MH) x Standard total OH rate = OH Applied

where Standard DLH = Actual Units Produced x Standard DLH Allowed Per Unit

where Standard Total OH Rate = ( Budgeted Fixed OH / Budgeted Units) + (Standard VOH Rate)

[Anonymous]

Year 1

Oper Rev = 900k

Oper Exp = 650k

Oper Assets = 1,200k

Year 2

Oper Rev = 1,100k

Oper Exp = 700k

Oper Assets = 2,000k

What is Year 2 ROI?

[Anonymous]

I don't think that monetary multiplier is included in Becker and I didn't see it in Wiley, so hopefully it's not really tested.

[Anonymous]

I think ROI for year 2 is 20%

[stoleway]

list three (3) other references for systematic risk

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[Anonymous]

@Amanda_88 that multiplier on the prior page is not in Becker afaik.

The answer is 25%.

1100k – 700k = 400k

(1200k + 2000k) / 2 = 1600k

400k / 1600k = 25%

[WANNABE_CPA]

@Amanda…Good Luck…You got this…i think you are very well prepared 🙂

FAR : 68, 74, 83 Thank you God 🙂
BEC : 78 (8/27) 🙂
REG : 72 ,80 (2/25) 🙂
AUD : 69,67, 07/23

[Anonymous]

Whoops, forgot to average the assets.

[Anonymous]

Thanks @wannebe!

Systematic risk: war, inflation, political events

[Author]

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