[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]

Never change your answer 😉

[WANNABE_CPA]

@casagarber.. soo true i always get the second one wrong if i ever change my answer..happened alot on FAR exam

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

[Anonymous]

Becker's definition says it “encompasses the physical security of IT assets, including access to facilities and access to programs and data……weather and acts of war are really uncontrollable….theft, disgruntled employees and computer fraud are a little more controllable.

[Anonymous]

I guess a physical control for weather would be something like a back up site…

[stoleway]

I would think that WEATHER and DISGRUNTLED EMPLOYEES have to do with securing your computer systems in a secured location, by doing this you're securing your system against extreme weather conditions as well as disgruntled employees.

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

Mass-CPA

[stoleway]

Chelsea Grammar is attempting to determine if her company's labor productivity has improved relative to that of the prior year. Therefore, for each period under analysis, she is finding the ratio of her company's total outputs to this input. This metric is known as:

A Total productivity ratio

B Partial productivity ratio

C Single-factor productivity ratio

D Both B and C above

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

Mass-CPA

[Anonymous]

That makes more sense…so I guess another example would be not put your computer room in a basement that is prone to flooding.

[stoleway]

@Casagarber….You're right

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

Mass-CPA

[GoVPI]

@stole

Is it B?

Partial is for one factor I believe into the total cost of output

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

[Anonymous]

I agree bc total productivity would be for labor AND materials.

[M.O.D.]

Re physical access

Yes, placing your computer in a hurricane-proof building is possible, but that would not stop computer fraud.

Re productivity:

Productivity = output/ input

Total productivity uses macroeconomic inputs including materials, labor, energy, etc.

Partial productivity counts some factors only

Single-factor counts only one factor, ie labor hours.

So I would say both B and C could work, depending on what she wants to measure.

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)

[Anonymous]

Starting Lecture 1 with Peter Olinto and hoping to get through a lot of questions tonight, too! Judging by the discussion here, I am going to hate BEC!!! 🙁

I also purchased BEC audio notes, hopefully those will help with my 3 week exam crunch!

Good luck to everyone!!!!

[Anonymous]

What is a relevant cost?

Tell me whether the following costs are relevant or not?

Incremental Costs –

Sunk Costs –

Opportunity Costs –

Controllable Costs –

Define each of these costs.

[Anonymous]

As a bonus, tell me what category joint costs fall into?

[WANNABE_CPA]

Relevant costs are costs that are affected with change in decision..

sunk costs are non relevant costs as they incurred in the past and cannnot be recovered.

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

[Author]

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