[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

[M.O.D.]

@ stoleway

Do you have the Gleim SIM/essay package?

When I was preparing for the CMA (which requires 1 hour of essays) I was writing 4 essays per day to prepare.

Some I rewrote 2-3 times over. Practice makes perfect, like with anything else.

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.]

At a remote computer center, management installed an automated scheduling system to load data files and execute programs at specific times during the day. The best approach for verifying that the scheduling system performs as intended is to

A. Audit job accounting data for file accesses and job initiation/termination messages.

B. Analyze job activity with a queuing model to determine workload characteristics.

C. Simulate the resource usage and compare the results with actual results of operations.

D. Use library management software to track changes to successive versions of applications programs.

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]

MOD…Yes I do and I practice them at least once a day.

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

Mass-CPA

[GoVPI]

Siaggas Corp, a greek shipping company, will need to purchase 1 Million in US dollars with euros in six months. The risk exposure faced by the company that the value of the euro will fall in relation to the US dollar is referred to as:

Purchasing power risk

Economic exposure

Translation exposure

Transaction exposure

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

[M.O.D.]

I would say transaction exposure because there is only one transaction at risk here.

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]

MOD …is the answer A?

@CPAin14

The scenario above is transaction exposure

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

Mass-CPA

[stoleway]

Which method of budgeting technique assume that cashflow are re-invested at the company's minimum Required Rate of Return?

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

Mass-CPA

[GoVPI]

Yep.

A planned federal government stimulus plan is estimated govt spending to increase 50 Million next year. Economist determined the MPC is .75. As a result of the stimulus plan the GDP will increase by what amount?

50 million

67 million

88 million

200 million

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

[M.O.D.]

@ stoleway

Yes, answer is A.

NPV method assumes both cash outflows and inflows are measured at the company's hurdle rate.

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]

MOD…..Correct

@CPAin14……is it 200?

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

Mass-CPA

[GoVPI]

Im not sure… I got it wrong on becker and its not telling me the correct answer. I chose 88 so thats out.

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

[M.O.D.]

The increase in GDP is govt stimulus x multiplier

The multiplier = 1/(1-MPC) = 1/.25 =4

So 50×4 =200

The reasoning is that the money get recycled 4 times through the economy, because consumers consume and re-consume again, etc. The marginal propensity to consume (MPC = .75) is a constant that measures this.

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]

Thanks.

When a firm finances each asset with a financial instrument of the same approximate maturity as the life of the asset it is applying:

Working Capital management

Operating leverage

Return maximization

Financial leverage

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

[stoleway]

Working Capital management?

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

Mass-CPA

[Anonymous]

The opportunity cost of making a component part where there is no alternative use for the factory is:

a. The fixed manufacturing cost of the component.

b. Zero.

c. The total variable cost of the component.

d. The total manufacturing cost of the component.

Explanation

Choice “b” is correct. Zero. If there is excess capacity, then it is not possible to have an opportunity cost because nothing is being foregone.

If there is no alternative use for the factory, doesn't it mean that there is no excess capacity? i'm confused..

[Author]

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