[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]

@CPAin14

Is it D?

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

Mass-CPA

[M.O.D.]

Yes I would say that the market price as a transfer price is the best for the divisions and for the company.

Since they sell products in a “perfectly competitive external market” that means they sell all they make and are therefore running at full capacity.

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)

[RandomAlt]

Hey all,

I've been reading through the study group, and have a question about study strategies for BEC.

I just started studying for BEC yesterday. I plan to take it around the end of August, so I'm looking at about 6 total weeks of study. I plugged that time period into CPAexcel exam planner.

The exam planner gave me two days to get through corporate governance, which is today. Corporate governance includes COSO, which from what I'm reading in this study group, sounds like a major topic.

Anyone have suggestions on how long it should actually take me to get through this section, whether it should be 2 days or 10?

Any other suggestions welcomed!

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

[Zackrampage]

@Random I don't know the specifics but I am also starting, with 6 weeks! I'm hitting my main study course, questions, notes, and audio. I made index cards for formulas but will write them out to remember them better!

FAR - 62 , End of aug 2015
BEC - 67, 67
AUD - TBD
REG - TBD

[stoleway]

The process of monitoring, evaluating, and modifying a system as needed is referred to as

A. Systems analysis.

B. Systems maintenance.

C. Systems implementation.

D. Systems feasibility study.

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

Mass-CPA

[M.O.D.]

Answer: Systems maintenance

@ Randomalt

Study until you know it, not for a fixed period of time. There is no way around it.

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)

[M.O.D.]

Question:

What are implicit costs and what are explicit costs?

What is a normal profit and what is an economic profit?

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)

[stoleway]

System maintenance is correct.

Implicit cost can also be referred to as opportunity cost while explicit cost is the accounting cost

Normal (Accounting) profit is Revenue – explicit or accounting cost.

Economic Profit is Revenue – sum of implicit and explicit costs

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

Mass-CPA

[M.O.D.]

Question:

What are the characteristics of monopolistic competition and oligarchy? How are they different?

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)

[Zackrampage]

Monopilistic competition is all about the marketing. Think of cologne. “Need the cologne to get the girl”.

FAR - 62 , End of aug 2015
BEC - 67, 67
AUD - TBD
REG - TBD

[M.O.D.]

@ Zack

Explain more please. And what about oligarchy?

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)

[ithinkican2013]

Hi Everyone. I recently was laid off and am motivated more THAN EVER TO FINISH THIS!! So far BEC has been a challenge. I am taking BEC now via Becker CPA review. I have been stuck on the first two chapters for several weeks now. Should I just move on? I am lost to a game plan on studying this section and what not to focus on. I know Im not doing myself any justice by starting, getting frustrated and stopping so I would like to get some thoughts on how I should tackle this and what to do when I get stuck on things.

Thanks!

[Pumpkins]

Hi Stoleway! Glad to see someone else that is using Gleim. From my experience on the AUD exam, the Gleim questions tend to be harder than the actual exam questions. I've been liking Gleim a lot so far.

AUD- 93
BEC- 81
FAR- 1/26/2015
REG- TBD

CIA Exams Passed in March, 2014

[Zackrampage]

@M.O.D for monopolistic competition think of mens cologne. Easy entry into thr marketplace. All you need are some cheap ingredients to make cologne. The key here is to try to build marketable brand loyalty such as advertising in a way where a man would think “if I buy the cologne I will get the girl.” The approach here is to pour everything into advertising.

FAR - 62 , End of aug 2015
BEC - 67, 67
AUD - TBD
REG - TBD

[GoVPI]

I know CPAforfree questions aren't AICPA released or anything but Im just using them as extra set because I have pretty much memorized my two test banks :0

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

[Author]

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