[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

[h0wdyus]

What is the formula for coefficient of variation. No looking in the book.

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FROM NJ

[EYNewHire]

r^2

[h0wdyus]

Nope. the coefficient of determination. R square.

FAR - 81 29th Aug 2013
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FROM NJ

[h0wdyus]

EY don't post the answer yet if you found out.

FAR - 81 29th Aug 2013
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[rzrbkfaith]

standard deviation/expected return… I couldn't see them testing this though… at least I hope not

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[Anonymous]

I guess I'll just spend this time hauling through the adaptive phase of NINJA then.

[h0wdyus]

That's right. this puts the standard deviation in comparison to the mean. It helps in comparing the variation/risk across other alternatives which may have data size very big or very small ( Mean could be 10 or it could be 10 million ). It helps compare risk.

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

[h0wdyus]

Nick keep posting questions from ninja

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

[Anonymous]

Income and employment tend toward an equilibrium level where:

inventory accumulation takes place.

inventory depletion takes place.

aggregate supply equals aggregate demand and intended savings equals intended consumption.

aggregate supply equals aggregate demand and intended savings equals intended investment.

[rzrbkfaith]

aggregate supply equals aggregate demand and intended savings equals intended investment

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[h0wdyus]

i will go with the last one too.

FAR - 81 29th Aug 2013
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[Anonymous]

Key Co. changed from a traditional manufacturing operation with a job order costing system to a just-in-time operation with a back-flush costing system. What are the expected effects of these changes on Key's inspection costs and recording detail of costs tracked to jobs in process?

A decrease in both inspection costs and detail of costs tracked to jobs

A decrease in inspection costs and an increase in detail of costs tracked to jobs

An increase in inspection costs and a decrease in detail of costs tracked to jobs

An increase in both inspection costs and detail of costs tracked to jobs

[h0wdyus]

First one.A decrease in both inspection costs and detail of costs tracked to jobs

FAR - 81 29th Aug 2013
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[Anonymous]

Becker doesn't cover Step, but here you are:

Parat College allocates support department costs to its individual schools using the step method. Infor­mation for May is as follows:

Support Departments

---

Maintenance Power

---

---

Costs incurred $99,000 $54,000

Services percentages provided to:

Maintenance — 10%

Power 20% —

School of Education 30% 20%

School of Technology 50% 70%

---

---

100% 100%

What is the amount of May support department costs allocated to the School of Education?

Select an answer:

$40,500

$42,120

$46,100

$49,125

[Anonymous]

Commercial banks and other financial intermediaries provide a variety of services to their retail customers in a very competitive market. Most institutions provide mortgage loans that allow the customer to refinance the loan at any time without a prepayment penalty. The type of interest-rate risk these institutions would be incurring is:

A.

option risk.

B.

re-pricing risk.

C.

basis risk.

D.

yield curve risk.

[Author]

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