[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]

D is correct

Partial productivity ratio (PPR) and single-productivity ratios are both acceptable as answers here. The total productivity ratio (TPR) refers to the ratio of all outputs to all inputs

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[stoleway]

Which function is generally responsible for providing expertise and leadership in the development of a website?

A Webmaster

B Web Administrator or Developer

C Web Designer

D Web Coordinator

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Mass-CPA

[M.O.D.]

Re costs:

Relevant cost: costs that affect an upcoming decision

Incremental costs: additional costs required to pursue a project (obviously relevant)

Sunk costs: costs which have already been spent on past projects (not relevant)

Opportunity cost: the cost of the next best alternative to the project under consideration (relevant)

Controllable costs: costs under the control of a particular manager or division (such as direct manufacturing costs, and not corporate allocated costs)

Joint costs: in process costing costs up to the time when the products are split-up into identifiable products.

It is a sunk cost as far as individual product decisions are concerned.

But it is a controllable cost for a division or production manager.

Re website

I would say web coordinator is more of an administrative position. The others are technical (expertise but not leadership) jobs.

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]

RE..Web

Answer is web master

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[stoleway]

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

Mass-CPA

[Anonymous]

I was going to say Web Coordinator as well…pretty sure Webmaster and Web Admin are the same thing – they handle online content….and like MOD said I'm pretty sure this these are not leadership roles.

[stoleway]

The answer in cpareviewforfree says webmaster

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Mass-CPA

[M.O.D.]

Re cpareviewforfree, you get what you pay for? 🙂

Question: please explain too, don't just give the letter answer.

Probability (risk) analysis is

A. An extension of sensitivity analysis.

B. Used only for situations in which the summation of probability weights is less than one.

C. Incompatible with sensitivity analysis.

D. Used only for situations involving five or fewer possible outcomes.

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]

I strongly believe that the right answer is sensitivity analysis but I don't have enough explanation to back it.

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[M.O.D.]

Answer (A) is correct.

Probability (risk) analysis is used to examine the array of possible outcomes given alternative parameters. Sensitivity analysis answers what-if questions when alternative parameters are changed. Thus, risk (probability) analysis is similar to sensitivity analysis: both evaluate the probabilities and effects of differing inputs or outputs.

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.]

Explain:

Economic markets that are characterized by monopolistic competition have all of the following characteristics except

A. Advertising.

B. Differentiated products.

C. Economies or diseconomies of scale.

D. One seller of the product.

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]

The answer is D. A monopolistic competitive environment is not to be confused with a monopoly. A monopolistic competitive environment is one which consists of a number of competitors. A few of the ways they try to maintain market share is through advertising and differentiating their products.

[M.O.D.]

CPA2B, correct.

Next question:

Show your calculations please.

Aerosub, Inc., has developed a new product for spacecraft that includes the production of a complex part. The manufacture of this part requires a high degree of technical skill. Management believes there is a good opportunity for its technical force to learn and improve as they become accustomed to the production process. The production of the first unit requires 10,000 direct labor hours. Management projects an 80% learning curve and wants to produce a total of eight units.

After completing the first unit, the estimated total direct labor hours Aerosub will require to produce the seven additional units will be

A. 30,960 hours.

B. 70,000 hours.

C. 40,960 hours.

D. 56,000 hours.

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]

This is probably the best and easiest way I've ever heard cost explained. I really struggle with it. https://m.youtube.com/watch?v=BQddOdAObYg

Hope it helps someone else too.

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Graduated from college 12/13/14
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REG
FAR

[klink24]

These are the type of questions I hate the most!

This question is based on the following information.

Total units of product – Average fixed cost- Average variable cost – Average total cost

6 – 15.00 – 25.00 – 40.00

7 – 12.86 – 24.00 – 36.86

8 – 11.25 – 23.50 – 34.75

9 – 10.00 – 23.75 – 33.75

The total cost of producing seven units is:

A. $90.02

B. $168.00

C. $258.02

D. $280.00

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4 up, 4 down, in 4 months.

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[Author]

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