[jeff]

Welcome to the Q3 2017 CPA Exam Study Group for BEC. 🙂

Introduce yourselves and let your fellow NINJAs know when you plan to take your BEC exam.

The Five Steps (NINJA Framework): https://www.another71.com/pass-the-cpa-exam/

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[tememi2005]

Hello guys, can you please tell if there is a list of the formulas and ratios as i see some here they recommend it?

Also, for the written essays, can i set up a form that i can use for all three questions in the exam?

[Josh]

Hey guys,

I took BEC this morning so I thought I'd share my experience with you all. I primarily used Becker and decided to purchased Ninja MC two weeks before my exam. During those two weeks I committed 90% of my time doing nonstop MC and completed about 1000 MC. Overall I think I did alright on the exam compared to Audit. I took audit in July and only used Becker for it and did not feel like I passed after I finished.

I highly recommend doing non-stop ninja MC and taking notes and questions you get consistently wrong. The ninja MC was very similar to the MC I got on my exam, if not easier. In terms of the actual exam, I believe I did well on the first section of MC because the second booklet of MC were much harder.

I am taking FAR next and wanted to know what you all think about ninja notes and flash cards. Since you can no longer purchase ninja MC as itself.

[Rrushi]

im going through the lectures in becker to study for bec, and right after doing the lecture and skills – i find myself lost in the multiple choice. Do i need to spend more time reading and understanding or hammering out as many multiple choice as possible?

[dbacpa]

Is anybody else waiting for scores while trying to study? I feel like people always say that BEC is the easiest, but I feel like I am struggling through Becker right now. For me, it's been the toughest out of the four. I don't know if I am just not completely concentrated or if anyone else feels this way as well.

[TJ]

@rrushi @dbacpa I feel the exact same about Becker! I am so confused doing the multiple choice after some of the modules. I was getting worried that I was not paying close enough attention while watching the lectures, but I am realizing that some of the practice questions are coming out of left field. Also, some of the questions have so much information and long charts that it's pretty ridiculous…

[Wvusteph13]

@dbacpa I am with you 100%. I lost credit for my REG because I am struggling with BEC. I retook REG in May and am now waiting on my score! But as I'm still studying BEC I feel like I am never going to grasp all of it.

[dbacpa]

@TJ I feel like I spend 10-15 minutes on some of their multiple choice questions. There is so much information and it's hard to even tell what the questions are asking. I have taken the other three exams and haven't felt like this at all. I'm glad I am not the only one…

[Anonymous]

Hello,

I'm hoping someone will be able to assist with the problem below. I'm not sure why only $10K is being picked up for years 1 & 2. If any Ninjas can help, I would greatly appreciate it.

Pole Co. is investing in a machine with a 3-year life. The machine is expected to reduce annual cash operating costs by $30,000 in each of the first 2 years and by $20,000 in year 3. Present values of an annuity of $1 at 14% are
Period 1
0.88
2
1.65
3
2.32
Using a 14% cost of capital, what is the present value of these future savings?
A. $69,500
B. $59,600
C. $62,900
D. $60,800

Answer (C) is correct.
The cost reductions constitute two annuities: a 3-year annuity of $20,000 per year and a 2-year annuity of $10,000 per year. Using a 14% cost of capital and ignoring tax effects, the present value of the future savings can be calculated as follows:
PV of 3-year cash savings:
$20,000 × 2.32
=
$46,400
PV of 2-year cash savings:
$10,000 × 1.65
=
16,500
Net present value
$62,900

[Anonymous]

So I just read it again I understand now. Sorry I couldn't figure out how to delete. I'm on my phone…

[kimphan]

Hello,

Please help me explain why this variance is favorable:

APPLIED fixed overhead = standard fixed OH rate x actual production) = $5.00 × 21,000 = $105,000

Budgeted OH based on standard hours = standard fixed OH rate x standard production = $5.00 x 20,000= $100,000

FAVORABLE fixed OH volume variance = $5000

Why not unfavorable since actual was more than budgeted? Please advise.

Kim

[beaudityoucanbe]

Hi Kim,

This sounds like a FOH volume variance question? I think it's $5,000 favorable because more units were produced using the same amount of fixed resources (both had a standard fixed overhead rate of $5, but the amount of production that actually took place was 21,000 units which exceeds the standard production of 20,000 units).

[kimphan]

Thanks so much, Beaudityoucanbe. Your explanation made it easier for me to understand.

[hhirsch]

Hi, For the writing part, did anyone write in the beginning who you are writing to? Dear board member or manager…I thought you were suppose to but then when I took my test that was already given so I didn't write it. I'm just wondering what the correct format is? Thanks!

[Lnags]

@hhirsch it was the same on mine too. The to/from was given. I just wrote the body and signature. That's how all of my WCs were set up in Wiley too.

[BBHYX]

Hey guys, a question for those well into your BEC studies — do you find BEC to be as memorization heavy as the other sections? Or more application?

[Author]

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