[jeff]

@h0wdyus

Incorrect

The answer is B. Comparable sales.

“The use of comparable sales is not an income approach to valuation of a business, it is a market approach. Under the comparable sales approach, the value of a business is determined by comparing it to other entities with comparable characteristics for which the value is more readily determinable.”

This was a tricky one

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

[stoleway]

An individual had been working for a firm that supplies parts to the automotive industry. In which of the following circumstances would be said that the individual was structurally unemployed?

A.

“I was laid off because there is a recession in the auto industry.”

B.

“I was laid off due to the model changeover at the auto plant.”

C.

“I was laid off because my company shifted production to a plant in China.”

D.

“I was laid off because my firm installed robotic technology that allowed them to reduce production costs.”

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

Mass-CPA

[RandomAlt]

Answer:

D.

“I was laid off because my firm installed robotic technology that allowed them to reduce production costs.”

Structural unemployment = prior job was eliminated / they lack skills needed for new jobs

A = Cyclical

B & C … well, I kind of feel like these could be structural also, but I'm my mind I always see structural questions involving losing a job to technology (Bookkeepers become obsolete due to new accounting software)

FAR - [10/07/2013 --> 66] [07/07/2014 --> 86]
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REG - [02/14/2015 --> 92]

[h0wdyus]

D. In structural unemp, the type of job gets eliminated and the unemployed has to be retrained for some other type of work.

FAR - 81 29th Aug 2013
AUD - 84
REG - 82
BEC - 89 29th Aug 2014
Using Yager

FROM NJ

[stoleway]

Well I chose D but ninja gave the answer as C

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

Mass-CPA

[RandomAlt]

Ugh? What is the reasoning? I still feel D is correct

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BEC - [08/31/2014 --> 86]
AUD - [11/24/2014 --> 88]
REG - [02/14/2015 --> 92]

[RandomAlt]

This is not the same question, but this is the explanation in an MCQ in CPAExcel where the answer is structural unemployment:

“Structural unemployment consists of members of the workforce who are not employed because the types of jobs they had previously have been greatly reduced or eliminated, including as a result of technological advances, or because they lack the skills needed for available jobs. Technological advances cause structural unemployment.”

FAR - [10/07/2013 --> 66] [07/07/2014 --> 86]
BEC - [08/31/2014 --> 86]
AUD - [11/24/2014 --> 88]
REG - [02/14/2015 --> 92]

[h0wdyus]

As per Wiley book page 148

“Structural unemployment occurs due to changes in demand for products or services or technological advances causing not as many individuals with a particular skill to be needed. Structural unemployment is reduced by retraining program.”

Answer should be D.

FAR - 81 29th Aug 2013
AUD - 84
REG - 82
BEC - 89 29th Aug 2014
Using Yager

FROM NJ

[stoleway]

I think the general consensus is on D, so I will stick with it. I will copy and paste the ninja explanation when I come across it again

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

Mass-CPA

[h0wdyus]

Good Morning folks.

FAR - 81 29th Aug 2013
AUD - 84
REG - 82
BEC - 89 29th Aug 2014
Using Yager

FROM NJ

[Anonymous]

Hi h0wdyus. I am studying for FAR now. Any suggestions?

[h0wdyus]

@2014CPAHopeful

The material is voluminous. I focused on understanding the concept and doing a few questions on each concepts. The test bank has a lot of questions good to do them if you have time. If you are short on time, repeat the understanding of the concepts.

If you remember the concepts in the exam you will be able to apply yourself to get the answer.

I used the Yaeger video series and went over them, since they covered the concepts and a few questions on each concepts. I tried to hit the test bank, but was quickly overwhelmed. If you are not working full time then you should try to do the test bank also.

FAR - 81 29th Aug 2013
AUD - 84
REG - 82
BEC - 89 29th Aug 2014
Using Yager

FROM NJ

[RandomAlt]

Morning all.

And what a beautiful day to be staying indoors and studying BEC.

Actually, im not kidding. Freakin 100 degree weather down here in South Florida.

No Thanks

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BEC - [08/31/2014 --> 86]
AUD - [11/24/2014 --> 88]
REG - [02/14/2015 --> 92]

[Anonymous]

Thanks! I am working full time so it might be hard to use the test bank. I am testing on 10/15 so I gave myself hopefully enough time to get through everything. I am using Becker and have used CPAreview for additional questions in BEC so I might do that again. I also bought the Ninja notes.

[RandomAlt]

The plan for this weekend: (Test is Sunday August 31st, so I have a little more than a week left)

1) I was hoping to finish the remaining unanswered CPAexcel MCQs, but I still have 350 out of 973 remaining, so I don't think that is going to happen. I want(ed) to use the remainder of the week to go through CPAforFrees MCQs.

2)Equivalent Units. I'm still not getting this topic at all, so I'm going to focus some time to this concept

3)Corporate Governance / COSO – So much to memorize

So what is everyones game plan for the weekend?

FAR - [10/07/2013 --> 66] [07/07/2014 --> 86]
BEC - [08/31/2014 --> 86]
AUD - [11/24/2014 --> 88]
REG - [02/14/2015 --> 92]

[h0wdyus]

@Random

1) EFU sucks . I have just memorized what to do at this point of time. Glad to hear I am not the only one, who cannot get it.

2) finishing up IT. ECO today all day.

3) remaining week costing .

Exam on 29th Friday 12:00

Oh God help me.

FAR - 81 29th Aug 2013
AUD - 84
REG - 82
BEC - 89 29th Aug 2014
Using Yager

FROM NJ

[Author]

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