[jeff]

BEC Resources:

Free BEC Notes & Audio – https://www.another71.com/cpa-exam-study-plan

BEC 10 Point Combo: https://www.another71.com/products-page/ten-point-combo

BEC Score Release: https://www.another71.com/cpa-exam-scores-results-release

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

[stokey45]

Okay guys. Yesterday I found out I passed REG! I took the day off to celebrate and now I am back at BEC! This will (hopefully) be my last exam! I am so ready to nail this one! So I am studying hard today and from here to Dec. 4th!

Good luck to everyone studying this window!

[stokey45]

Okay guys. Yesterday I found out I passed REG! I took the day off to celebrate and now I am back at BEC! This will (hopefully) be my last exam! I am so ready to nail this one! So I am studying hard today and from here to Dec. 4th!

Good luck to everyone studying this window!

[kevinco]

Hi stokey, I am in the same boat! I passed REG but have to tackle BEC this friday. Last one ( hopefully)

Boise State Alumni

05/08/13 FAR Passed - 80
07/09/13 AUD Passed - 96
10/10/13 REG Passed - 75
11/07/13 BEC 77!!! I am DONE!!!!!!!!
12/13/2013 Received my CPA license on my son's 6th birthday in the mail! My son is always a blessing!!

BS - Environmental Science
BBA - Accountancy

Becker Lectures and MCQs. Click on my avatar for my LinkedIn page.

[kevinco]

Hi stokey, I am in the same boat! I passed REG but have to tackle BEC this friday. Last one ( hopefully)

Boise State Alumni

05/08/13 FAR Passed - 80
07/09/13 AUD Passed - 96
10/10/13 REG Passed - 75
11/07/13 BEC 77!!! I am DONE!!!!!!!!
12/13/2013 Received my CPA license on my son's 6th birthday in the mail! My son is always a blessing!!

BS - Environmental Science
BBA - Accountancy

Becker Lectures and MCQs. Click on my avatar for my LinkedIn page.

[smyoung0521]

I apologize for the silly question but it has been many years since I took econ classes.

Someone please help explain this to me:

The question is in the Wiley test bank

Which of the following actions is the acknowledged preventative measure for a period of deflation?

I thought the answer would be to lower interest rates. According to Wiley the answer is to increase the money supply with the following explanation:

“This answer is correct. The requirement is to identify the action that is a preventive measure for a period of deflation. This answer is correct because in a period of deflation the government wants to encourage borrowing and investment to promote economic growth.'

Why would it be increasing money supply and not lowering interest rate…

Restarting my journey!
Using Rogers and supplementing with Ninja

[smyoung0521]

I apologize for the silly question but it has been many years since I took econ classes.

Someone please help explain this to me:

The question is in the Wiley test bank

Which of the following actions is the acknowledged preventative measure for a period of deflation?

I thought the answer would be to lower interest rates. According to Wiley the answer is to increase the money supply with the following explanation:

“This answer is correct. The requirement is to identify the action that is a preventive measure for a period of deflation. This answer is correct because in a period of deflation the government wants to encourage borrowing and investment to promote economic growth.'

Why would it be increasing money supply and not lowering interest rate…

Restarting my journey!
Using Rogers and supplementing with Ninja

[Anonymous]

@ smyoung0521 – During a period of deflation, interest rates are already at their lowest. Think of deflation as similar to inflation. Where in inflation, everything is very expensive and IR are high, in deflation everything is extremely cheap and interest rates low. They are both very negative. Deflation is damaging to the economy because businesses do not want to borrow money and pay it back with money that has more purchasing power.

In order to bring the economy back to normal, the Fed needs to increase the money supply. They could do this by decreasing taxes, buy gov't securities through open market operations, decreasing the reserve ratio, or decreasing the discount rate.

[Anonymous]

@ smyoung0521 – During a period of deflation, interest rates are already at their lowest. Think of deflation as similar to inflation. Where in inflation, everything is very expensive and IR are high, in deflation everything is extremely cheap and interest rates low. They are both very negative. Deflation is damaging to the economy because businesses do not want to borrow money and pay it back with money that has more purchasing power.

In order to bring the economy back to normal, the Fed needs to increase the money supply. They could do this by decreasing taxes, buy gov't securities through open market operations, decreasing the reserve ratio, or decreasing the discount rate.

[stokey45]

@kevinco

Congrats to you too for passing REG. Wow you are going to take BEC much sooner that I am. I am not taking it until Dec.4th.

Good luck to you I hope you nail BEC!!

[stokey45]

@kevinco

Congrats to you too for passing REG. Wow you are going to take BEC much sooner that I am. I am not taking it until Dec.4th.

Good luck to you I hope you nail BEC!!

[stokey45]

Guys can you help me with this one.

I am using Becker to study BEC. When it explains the difference between Absorption costing and Variable costing it says the difference is the fixed manufacturing overhead. Manuf. OH is a period cost not a product cost. In the 2013 review material, on page B2-5, in the pass key it shows under variable (direct) costing that variable and fixed sg&a is a period cost but in the example right below it shows the variable sg&a as a product cost to reduce sales to arrive at the contribution margin. Which is it a period or product cost?

[stokey45]

Guys can you help me with this one.

I am using Becker to study BEC. When it explains the difference between Absorption costing and Variable costing it says the difference is the fixed manufacturing overhead. Manuf. OH is a period cost not a product cost. In the 2013 review material, on page B2-5, in the pass key it shows under variable (direct) costing that variable and fixed sg&a is a period cost but in the example right below it shows the variable sg&a as a product cost to reduce sales to arrive at the contribution margin. Which is it a period or product cost?

[jennknee]

@stokey45

I found this really confusing as well, but to take your points:

1. Manufacturing overhead is definitely a product cost.

Product cost: direct labor (DL), direct material (DM), manufacturing overhead

Prime cost: DL and DM

Conversion: DM & Manufacturing ovh (i hope i am getting this right, i get confused lol)

2. Selling, general and administrative is always a period cost.

3. Contribution margin is just Selling Price – All Variable Costs (product or period). It is doesn't distinguish between product or period cost.

4. Also, the difference between absorption costing and variable costing is just fixed overhead. You would expense sg&a in both types of costing.

AUD - 7/5/13 - 93
FAR - 8/24/13 - 91
BEC - 11/30/13 - 92
REG - 2/24/14 - 91! DONE!

CPAreviewforFREE, Wiley Test Bank, Becker, and NINJA FLASHCARDS. <3
Candidate from California

[jennknee]

@stokey45

I found this really confusing as well, but to take your points:

1. Manufacturing overhead is definitely a product cost.

Product cost: direct labor (DL), direct material (DM), manufacturing overhead

Prime cost: DL and DM

Conversion: DM & Manufacturing ovh (i hope i am getting this right, i get confused lol)

2. Selling, general and administrative is always a period cost.

3. Contribution margin is just Selling Price – All Variable Costs (product or period). It is doesn't distinguish between product or period cost.

4. Also, the difference between absorption costing and variable costing is just fixed overhead. You would expense sg&a in both types of costing.

AUD - 7/5/13 - 93
FAR - 8/24/13 - 91
BEC - 11/30/13 - 92
REG - 2/24/14 - 91! DONE!

CPAreviewforFREE, Wiley Test Bank, Becker, and NINJA FLASHCARDS. <3
Candidate from California

[Journhi]

@UCMCPA congrats! I see you passed REG 🙂

Thank GOD I passed REG!!!!! When I had hope I passed I failed and when I did not expect to pass I did.

FAR: 62;79
AUD: 76
REG:67; 77
BEC: 68;66; 12/05/13

[Author]

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