[jeff]

I’ve had a few requests for April/May Study Groups…March will be here before you know it.

In order to take an early April exam, you should begin studying…now. 🙂

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[Anonymous]

Red Sox Fan, I did not revisit the audit section like Cindy mentioned but I will this time :O

Travis – Sounds like we had the same situation. I am using WTB, books, and Yaeger videos. I got best in Econ and IT also and lacked in Corp Gov & the WCs too. I did read through the written examples in the Wiley books and also practiced a few. I have been doing technical writing for years and thought I would get all the points on these but instead they said I was weak. So you probably feel like I do, don't REALLY know why you didn't pass. I tested in the 90s in WTB for Corp Gov.

[Anonymous]

Thanks @NYC.

@MJP- It's my opinion that cost is the worst part of the exam. I'm not a big fan of the different types of variance analysis.

[NYCaccountant]

Is the Variance analysis stuff heavily tested? I have a pretty good understanding of that for some reason. Also, are your review materials covering regression analysis, how well the cost relates to the activity levels?

Y=A+b(X) B being slope, A being fixed costs and X being the activity level. I think of B as the variable cost per unit, is that a proper way to look at it? Only the the fixed cost per unit changes as input increases, decreases?

Last question revolves around Beta, variance for portfolios and covariance. Can someone break these down for me? My review material does not really go into heavy detail.

FAR - 93
REG - 87
BEC - 84!!!!
AUD - 99!!!!!! CPA exam complete.

[RedSoxFan77]

Y=a + b(x)

Y is the dependent variable

x is the independent variable (activity level, like you said)

A is the constant (fixed costs)

B is the slope/variable

Fixed costs won't change as input increases. beta measures the variability of an investment compared to other investments in the portfolio. so if beta is negative for an investment, then the other investments move in the opposite direction, which is good because risk is mitigated.

FAR 75
AUD 74, 82
REG 58, 74, 83
BEC 68, 75
Licensed 7.1.14!!!

[NYCaccountant]

The fixed cost per unit does change though. The total fixed cost does not. And also, Variance and covariance? I have the Ninja notes, so I'll run through that.

FAR - 93
REG - 87
BEC - 84!!!!
AUD - 99!!!!!! CPA exam complete.

[Quinacridone]

Hey all – dropping in here from the Auditing group. General question on study time – I saw someone above mention 3 weeks study time for BEC. Does that include getting through all of the lectures and then some extra time for reviews? I'm taking auditing on April 16, and wondering if I could slip into the BEC test sometime around May 5-8.

I'm going on a 3 week vacation May 9, so if I start studying BEC after AUD, its a risk on passing (I work full time). Whereas if the material is too much to try to do in 3 weeks, it may be better if I just wait till I return from vacation, and then take the test in July with a more comfortable margin for studies. Any opinions?

I have no recent cost experience (I'm a govt auditor) and haven't had a cost class in a few years. I enjoyed cost when I was in it, but it was all memorization (which left me about an hour after I took my final in that class).

REG - Nov 4, 2013: 88
FAR - Feb 27, 2014: 86
AUD - April 5, 2014: 91
BEC - May 6, 2014: 83

Florida CPA 24 July 2014
(Done in seven months - thank you Jesus!!)

[RedSoxFan77]

Quinacridone, I work full time too and there's no way I could pass BEC with 3 weeks preparation, even if I didn't work and could dedicate three weeks full time to study, I probably would burn out from cramming all my study time in such a short period. My recommendation is to give yourself more time to study and take it in July. You could give it a shot though, the only potential loss is the cost of the exam.

FAR 75
AUD 74, 82
REG 58, 74, 83
BEC 68, 75
Licensed 7.1.14!!!

[RedSoxFan77]

Could someone help me on this WTB question? In short, the question asks how many widgets to break even, and the answer includes in the contribution margin delivery costs and commissions. I thought those were selling costs (period costs) and should not be part of the product cost. Any thoughts?

FAR 75
AUD 74, 82
REG 58, 74, 83
BEC 68, 75
Licensed 7.1.14!!!

[NYCaccountant]

The commissions and shipping costs should be a part of the contribution margin. because they are variable and not fixed,so the total changes with the level of production. When figuring out contribution margin, include all variable costs in the contribution margin analysis because it changes with production. If I told you that you paid a flat fee for shipping and commissions, then yes thats a fixed cost, so no need to include it in the contribution margin because it would not change with the level of production.

FAR - 93
REG - 87
BEC - 84!!!!
AUD - 99!!!!!! CPA exam complete.

[NYCaccountant]

You're not trying to figure fixed vs product cost, you're trying to figure how many units must I sell to break-even, so in essence, because variable costs keep changing, you have to include them in the contribution. This is subset of variable costing, because absorption costing would have absorbed fixed and variable manufacturing into the cost of inventory.

FAR - 93
REG - 87
BEC - 84!!!!
AUD - 99!!!!!! CPA exam complete.

[RedSoxFan77]

OK, thanks NYC, for the clarification. I'm getting absorption and variable costing confused. It makes sense now, under variable costing, period costs are deducted to arrive at CM.

Thanks!

FAR 75
AUD 74, 82
REG 58, 74, 83
BEC 68, 75
Licensed 7.1.14!!!

[Quinacridone]

Thank you RedSoxFan! You probably just saved me $300. I saw someone's post here saying they did BEC in 2 weeks and passed (I think with an 81) and I got severely tempted.

REG - Nov 4, 2013: 88
FAR - Feb 27, 2014: 86
AUD - April 5, 2014: 91
BEC - May 6, 2014: 83

Florida CPA 24 July 2014
(Done in seven months - thank you Jesus!!)

[JD]

Where do you all rank BEC on the CPA spectrum? Some people hate it, some people love it…. I think the material (read “formulaic”) can be pretty intense at times and it strikes me as being on par with REG and more difficult than AUD. Thoughts?

I'm with Ben – I think writing down the formulas in conjunction with working the questions will be helpful.

AUD - 80 - 105 hrs review
REG - 79 - 123 hrs review
BEC - 81 - 126 hrs review
FAR - 68 -180 hrs review, Round 2 - 18JUL(?) - ___ hrs review

[NYCaccountant]

My plan is just do the formulas till they stick! Over and over and over.

FAR - 93
REG - 87
BEC - 84!!!!
AUD - 99!!!!!! CPA exam complete.

[mjp44]

Hey guys, quick question:

The following information is taken from Wampler Co.'s Year 1 contribution income statement:

Sales $ 200,000

Contribution margin 120,000

Fixed costs 90,000

Income taxes 12,000

What was Wampler's margin of safety?

a.

$168,000

b.

$182,000

c.

$50,000

d.

$150,000

I understand the margin of safety concept, however, I cant conceptually understand the breakeven $ amount in this question. So, the fixed costs are $90k and the contribution margin % is 60%, so 90k/60% = $150k breakeven point – got that. Breakeven point is the point when sales = total costs (fixed and variable). But in this problem, isnt the total costs 170k? 90k fixed + $80k variable (200-120)? so wouldnt the sales need to be $170k inorder to breakeven?

FAR- PASSED (11/13)
REG- PASSED (2/14)
BEC- PASSED (5/14)
AUD- PASSED (8/14)

If it's important to you, you will find a way. If it isn't, you will find an excuse.

[Author]

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