[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.]

Exponential smoothing is a way to forecast based upon prior months.

Linear programing is maximizing given constraints.

Queuing is maximizing given bottlenecks.

PERT is a diagram tool to determine the critical paths in project management

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]

Stole.. Correct.

Next up:

Theoretically, the proceeds from the sale of a bond will be equal to

The sum of the face amount of the bond and the periodic interest payments.

The face amount of the bond.

The face amount of the bond plus the present value of the interest payments made during the life of the bond discounted at the prevailing market rate of interest.

The present value of the principal amount due at the end of the life of the bond plus the present value of the interest payments made during the life of the bond, each discounted at the prevailing market rate of interest.

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

[stoleway]

The present value of the principal amount due at the end of the life of the bond plus the present value of the interest payments made during the life of the bond, each discounted at the prevailing market rate of interest.

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

Mass-CPA

[GoVPI]

@stole..Correct

For a manufacturing company, which of the following is an example of a period rather than a product cost?

Depreciation on factory equipment.

Wages of salespersons.

Wages of machine operators.

Insurance on factory equipment.

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

[M.O.D.]

The present value of both the principal and the interest payments, discounted at the market 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)

[Masso]

Thanks. BEC is killing me. I am using the test prep and the book to prepare for BEC. I only have the IT left to study.

[M.O.D.]

Depreciation is a product cost (OH)

Wages of operators is a product cost (DL)

Insurance is a product cost (OH)

Salespersons are not a product cost, thus a period cost.

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.]

@ maso

Are the Gleim BEC IT chapters not clear?

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]

Wages of salespersons.

The rest are factored into production cost

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

Mass-CPA

[M.O.D.]

@ stole

You're hot. We should have essay answers (at least one paragraph) also, not just MCQs.

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]

Yep!

In the law of comparative advantage, the country that should produce a specific product is determined by

Opportunity costs.

Profit margins.

Economic order quantities.

Tariffs.

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

[stoleway]

Guessing on this one…..Opportunity costs?

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

Mass-CPA

[M.O.D.]

Comparative advantage means that a country should specialize in what it does best. This means that it is minimizing its opportunity costs. If the next alternative is to produce something it is not good at, that is a high opportunity cost.

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)

[SIR AGE]

Hi group!

I'd have to say opportunity costs as well.

AUD: 5/27 82!
FAR: 7/3 80!
REG: 7/21 76!
BEC: 8/8 78!

[Masso]

@MOD, I just started the IT and 4 chapters seem to be a lot. I was looking for an effective way to study for it – I was hoping to learn it for 2 weeks, do a final review the remaining days of august and sit for last saturday – thanks

[Author]

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