[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.]

CPA2B, correct

SmartBEC Co. has considerable excess manufacturing capacity. A special job order’s cost sheet includes the following applied manufacturing overhead costs:

Fixed costs: $21,000

Variable costs: 33,000

The fixed costs include a normal $3,700 allocation for in-house design costs, although no in-house design will be done. Instead, the job will require the use of external designers costing $7,750. What is the total amount to be included in the calculation to determine the minimum acceptable price for the job?

What if excess capacity did not exist?

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]

@M.O.D.

With excess capacity: Variable Costs + Additional Relevant Costs = 33,000 + 7,750 = 40,750

With no excess capacity: 40,750 + Opportunity Cost (contribution margin forgone)

[stoleway]

Question…

List 3 examples of computer input devices

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[h0wdyus]

@stoleway

mouse; keyboard, Optical readers ; CD Rom. Radio frequency reader ( used at toll booths ) ; Touch screens. Just think of daily use items.

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Using Yager

FROM NJ

[stoleway]

correct

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[stoleway]

Which system incorporates making the best decision possible, using logical approach by asking series of questions, by using reasoning and by allowing subjective inputs and outputs?

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[Anonymous]

Fellow BEC students. I am currently doing my review for my test, testing this Monday, and am practicing a few written questions to hone my skills. I have used Becker and in the book they specify that when preparing the written responses “do not use bullet points”. I currently work for a CPA firm, and if I was to write a memo that would include many points, I would more than likely use bullet points.. Is this a “Becker” standard, or is that a actual NO, NO for the exam. Any thoughts would be helpful.. Good luck to all of you. This will hopefully be my last exam.

[M.O.D.]

CPA2B, Correct

Regarding writing: not sure what you mean by bullet points. If it a complete sentence, it is fine. It if is an outline, it is not enough.

If you are making a list of items, put them in a sentence, or paragraph. I think they want to test your writing ability.

Although I agree bullets are often more clear than a long paragraph, this is a writing test, not a visual display test.

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]

@csmitty1007

You're right, Bullet point is a NO NO. Instead of listing them in bullets points, you could put them in a continuous sentence form, separating them with the right punctuations. I have my own flaws with the written aspect so you guys can chime in and expand on this.

REG -63│ 84!!
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[Pumpkins]

Hey guys, how is the studying coming?

I'm taking the exam next week. At this point I'm just going to do as many MCQs as possible. There is just such a variety of information, I feel this is going to be the best final review for me.

People say this is the easiest section.. but there is so much random stuff! I'm finding it more difficult than AUD studying.

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

CIA Exams Passed in March, 2014

[Zackrampage]

I do decent on topics besides cost accounting :/

FAR - 62 , End of aug 2015
BEC - 67, 67
AUD - TBD
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[Anonymous]

@stoleway and @M.O.D.

Thanks for your responses. The reason I asked was one of the questions I was preparing a response for seemed perfect for bullets or at lease a numbered, here are my points.. Also do you know will it always be a Memo you are writing on the exam. This is how Beckers are all set up as. Maybe I am a bit ignorant, but when I think of a memo I think of an “in house” response. If I am responding to a client, I am sending them a letter, not a memo. Maybe I am also overthinking this a bit.

[M.O.D.]

@ pumpkins, yes random MCQs will cover your knowledge

@ stoleway: practice 3-4 essays per day: no joke. Your writing is improving, I can tell. Not only will you practice your writing, but also review the material at the same time.

@csmitty

It is true that memos are usually used for in-house communication or documentation. As such the BEC use of the word memo is a misnomer. Because when you do write to a client you write a letter, not a memo. I think they are using an antiquated use of the word memo, meaning informal letter.

A letter starts as Dear Client, memo is From: CPA firm To: Client

Otherwise it is just like a letter:

“In response to your question about business deductions…”

or

“Following our meeting, I wanted to address your concerns about the board's fiduciary responsibility…”

So follow the formality and the paragraph style of a letter and you'll do well. Because all of their sample essays are communication with clients.

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]

Thanks MOD!

A week before my exam, I will be writing a couple of WCs on this forum to see if I can get some critique on them. I keep writing and re-writing WCs as part of my study plan.

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[Anonymous]

@M.O.D.

Thanks! That makes sense.

[Author]

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