[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]

Okay so abnormal spoilage wouldn't be included in the EU calculation then? Becker never even mentioned spoilage in relation to EU's so I want to be sure I'm understanding this right.

[Anonymous]

EU, no matter WA or FIFO, includes inventoriable costs. So abnormal spoilage would not be used in either calculation afaik.

[jakeeee]

My test is tomorrow. I was really nervous about the variances but I went over the ABA BSA acronym and formulas in B2 and now it's finally starting to click! I was really freaking out about an hour ago and was just about to give up on them. Gonna tackle MC questions I flagged for the variances one more time, review all the formulas, take a practice test and call it a day.

Good luck everyone!

BEC - July 2014
REG - Aug 2014
FAR - January 2015
AUD - May 2014
Ethics - 3x...

[M.O.D.]

From a managerial perspective, Abnormal spoilage is an amount that should be isolated and identified, to be controlled. This is why it is not included in inventory, where it is mixed with the other costs.

By expensing it, it becomes visible in the financial statement, thus this treatment.

Normal spoilage however is included as part of inventory because it the normal cost of processing, thus there is no need to isolate it as a variance.

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)

[WANNABE_CPA]

Can someone help me undertstand :

Effect on overall gross margin if the method is changed from By product to Joint product?

Question :

Kode co manufactures a mojor product that gives rise to a by-product called May. May's only separable cost is a $1 selling cost when a unit is sold for $4.Kode accounts for May's sales by deducting the $3 net amount from the cost of goods sold of the major product. There are no inventories.If kode were to change its method of accounting for May from a by-product to a joint product, what would be the effect on Kode's overall gross margin?

a.Gross margin increases by $4 for each unit of May sold.

b.Gross margin increases by $1 for each unit of May sold.

c.Gross margin increases by $3 for each unit of May sold.

d.No effect

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

[husker4]

Just took BEC. sucked so bad.

[Me.]

I just took BEC too! I felt I did okay, I hate the long wait for score release though! Well back to studying for FAR for my retake…going to use Ninja MCQ's this time around…

REG - 50, 64, 73, 76
FAR - 67, 65, 67 Ugh!!!
BEC - 65
AUD - November 30

"You just can't beat the person who never gives up." -Babe Ruth

[M.O.D.]

Re joint product

I don't think there is any effect.

In the case of a by-product, the revenue is subtracted from GOGS.

But the cost of the byproduct is in inventory, thus COGS, though it is not separated.

Since the gross margin = sales – COGS

GM = sales – (COGS + 3 -3) = sales – COGS

In the case of joint product, we would need to know the joint cost +$1 for after processing (separable cost)

We are not given the joint cost, but are told there are no inventories left therefore, it is all part of COGS

Because the $1 was put into inventory that too is part of COGS. Lets assume the cost was $3. Then:

GM = sales + 4 – (COGS + 4)

= sales – COGS

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)

[Peterman25]

Re joint product

I don't think there is any effect either.

Previously Kode was netting the sale against COGS. Now the product has been shifted to sales. Seems like the transaction has just shifted “buckets”. Am I over simplifying it?

BEC 7/14 - PASS
FAR 10/14 - PASS
AUD 1/15 - PASS
REG 4/15 - PASS

AZ license - Official 8/20/2015

[Anonymous]

I am so ready for this test to be over. I started going through Wiley questions today and got through about ~200 on corporate governance, cost accounting, budgets, variances, etc. I honestly can never tell if I'm prepared or not. I hope on the test, the variance questions are pretty straight forward.

[iman_a]

Took BEC today… Not sure how to feel at this point. 🙁

Throughout the entire exam, I kept asking myself whether I even studied the right material. I nearly had the entire Becker book memorized, but I feel as if my studying went to waste. There were SO many random irrelevant questions!!! I scored an 83 on the Becker final exam, but I definitely think that the actual exam was much more difficult.

Has anyone had a similar experience?

AUD - 96
BEC - 85
REG - 81
FAR - 11/28

[OnTheRoadtoCPA]

Hi everyone.

Taking my second round of BEC on Saturday morning. I feel like I know Becker inside and out! But I felt like that last time and only got a 70 🙁

Anyone else taking BEC soon? We're in this together!!!!

[Anonymous]

Is there any update for BEC Q3 test? Can someone provide link where I can see update materials

I dont think there are any on Becker websites

Thanks

[lauren725]

iman – those scores look good and I am sure you did really well.

Amanda – good luck studying this week! You are so close and I know you can do it!!!!

NJ- maybe you could push your test to Aug 29th and then we can both pass together. ha! I know how you feel. I also feel behind/overwhelmed but I am going to take the test regardless because I don't want to miss a window. I remember feeling like that for FAR but then somehow I passed so you neverk now, anything is possible! I know you can do this!!

Good luck to everyone taking this test this week! Ya'll will do great!

AUD - 73,91
FAR - 79 - Thank you God!
BEC - 73,79!!!!
REG - 92 whatttt??!

I used Becker review + flashcards, Ninja Audio, Ninja MCQ supplement on BEC and REG.

Done! Praise God!

[Anonymous]

Test day for me! I'm feeling nervous. Got through all of Becker and did NINJA approximately 200 questions (overall average 75), I know not a lot but definitely picked up some random facts. Going to watch the WC Becker lecture and rewrite all my formulas then I'm out the door! Good luck to everyone else testing!

[Author]

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