[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]

Doesn't appear that Becker covers it from what I could find. They barely covered the step-down approach as is (say to go through the example on your own). Guess I'll just have to take my chances come exam day, as I haven't seen a reciprocal service cost allocation question in any of the 2,000 mcq I've done with Becker.

[Anonymous]

That's crazy…Wiley has problems regarding it and even has a Sim.

[Anonymous]

The reciprocal method is the most accurate method of all three.

[Anonymous]

Becker only has the MCQ and WC, no full work-through problems in the Becker materials for BEC.

[Anonymous]

Yeah, I looked it up online to get at least a little info on it. I'm surprised it's that vital to know, since Becker doesn't even mention that there's a third method.

[gkeebs]

@laikmonster I've been listening to my Becker lectures through my phone/car audio while on my commute and it's been way more helpful than watching. I found my mind wandered too much when watching the lectures, and because I am an auditory learner listening to them has been much more beneficial. I guess I'll get a true measure of how much more (or less) helpful it has been come 7/8/2014 when I sit for BEC. 😉

[IndianaCPA]

My bec exam is tomorrow. Is there one written communication or two? The Becker final exam has 3 but the exam summary only shows one. The aicpa sample exam indicates there are two.

B 74, 79
A 62, 81
R 76
F 75

Done!

[Anonymous]

There are 3. 1 is pre-test.

[parsenov]

[Anonymous]

Yeah, I don't remember the reciprocal method being covered at all in Becker…Honestly, if Becker doesn't cover it, I'm not going to waste my time trying to learn it, in the off chance I get 1-2 problems on it. I got an 83 using only Becker and nothing to even supplement the last time I took it so I trust Becker to help me this time around.

[M.O.D.]

I do not see any service contract allocation methods in my Gleim BEC book.

They were covered in depth in the CMA book, including the reciprocal method, and in my cost accounting class/book, so I do know what you are talking about.

However it is possible that they are being deprecated from BEC. As is much of cost accounting really, in favor of IT and COSO rules and theory:

BEC starts on page 29:

https://www.aicpa.org/BecomeACPA/CPAExam/ExaminationContent/ContentAndSkills/DownloadableDocuments/CSOs-SSOs-Effective-Jan-2014.pdf

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)

[GoVPI]

Got my NTS finally after waiting almost 2 months! Gosh the application process takes forever. I've completed Becker 1,2,4,5 and doing 6 tomorrow. Im really good at COSO thanks to my auditing professor, she drilled in into our heads for two semesters. I am just horrible at cost accounting, I am teaching myself (it was a language barrier/he is retiring). Im pretty nervous, BEC scares me considering it'll be my first test and cost accounting is on there. I just hope I pass and can move to auditing. Guess I better figure out a date when to take my first shot at the CPA exam.

BEC 8/14/14 - Passed
Graduated from college 12/13/14
AUD 8/31/15 - 74. Retake - Passed
REG
FAR

[JamesBJames]

Becker's B4 is the weirdest chapter. It's not consistently hard or easy, and I think I'm getting whiplash as the book jumps from something I've known for ten years to ridiculously technical IT jargon and back again. At least the ride's almost over. One more day of B4, a couple days of B6, and then review!

I also had two “I [missed / am going to miss] the exam” dreams last night. Bring it on, BEC.

FAR: May 1st, 2014 - 91
AUD: May 29th, 2014 - 97!
BEC: July 16th, 2014 - 91
REG: August 29th, 2014 - 88

Licensed December 2015

Feel free to add me on LinkedIn by clicking my username!

[Anonymous]

This is it!!! 5 more hrs!!!

[parsenov]

Good luck to all of us today.

[Author]

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