[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

[Anonymous]

Yorker, I would address the proper person.

[RandomAlt]

Which of the following characteristics distinguishes computer processing from manual processing?

a. Computer processing virtually eliminates the occurrence of computational error normally associated with manual processing.

b. Errors or fraud in computer processing will be detected soon after their occurrences.

c. The potential for systematic error is ordinarily greater in manual processing than in computerized processing.

d. Most computer systems are designed so that transaction trails useful for audit purposes do not exist.

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[Anonymous]

@RandomAlt the answer is A.

[h0wdyus]

A

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FROM NJ

[RandomAlt]

Correct!

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[h0wdyus]

The budgeting tool or process where estimates of revenues are prepared for each product beginning with the product’s research and development phase and traced through to its customer support phase is a(n)

Master budget.

Activity-based budget.

Zero-based budget.

Life-cycle budget.

FAR - 81 29th Aug 2013
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REG - 82
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FROM NJ

[Anonymous]

Life-cycle

[h0wdyus]

Right.

Try this one.

Snyder Co. manufactures fans with direct material costs of $10 per unit and direct labor of $7 per unit. A local carrier charges Snyder $5 per unit to make deliveries. Sales commissions are paid at 10% of the selling price. Fans are sold for $100 each. Indirect factory costs and administrative costs are $6,800 and $37,200 per month, respectively. How many fans must Snyder produce to break even?

1,375

648

564

530

FAR - 81 29th Aug 2013
AUD - 84
REG - 82
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FROM NJ

[EYNewHire]

648

[h0wdyus]

yes. Good job

FAR - 81 29th Aug 2013
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FROM NJ

[TigerWoods]

My calculation gave me 647.06. Why is the answer off a whole number?

[h0wdyus]

rounding errors. They must have used the CPA exam calculator. hahahahaha

FAR - 81 29th Aug 2013
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FROM NJ

[EYNewHire]

@TigerWoods It's not off. You can't sell .06 of a unit so you must round up.

[TigerWoods]

Ahh, gotcha.

[h0wdyus]

The following information is available on Crain Co.’s two product lines:

Chairs Tables

Sales $180,000 $48,000

Variable costs (96,000) (30,000)

Contribution margin 84,000 18,000

Fixed costs:

Avoidable (36,000) (12,000)

Unavoidable (18,000) (10,800)

Operating income (loss) $ 30,000 ($4,800)

Assuming the tables line is discontinued, and the factory space previously used to make tables is rented for $24,000 per year, operating income will increase by what amount?

$13,200

$18,000

$24,000

$28,800

FAR - 81 29th Aug 2013
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[Author]

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