[jeff]

Welcome to the Q4 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

[BBHYX]

@ken so if the problem had both normal and abnormal spoilage in # of units (say instead of 1500 normal spoilage units, you have 500 normal spoilage units and 1000 abnormal spoilage units) how should the cost be allocated between the two spoilages and regular produced units? I understand that the costs associated with the 500 would be inventoried and the cost associated with the 1000 would be expensed.

Am I correct in thinking that the EU would be the same? You would still divide your costs by the same EU. The amount allocated to the abnormal spoilage units would just get expensed? while the amount allocated to normal spoilage units end up in inventory/cogs/

[kenckang]

i think the general calculation to get EU would still be the same. however, im not exactly sure what the dollar amount of the abnormal spoilage units would be.

normally, you would divide Beg WIP cost and Current Costs by the Equivalent Units to get $/EU. can that same $/EU be multiplied by 1000 to get the abnormal spoilage $ cost? I'm not sure. I haven't encountered a MCQ problem that fits this scenario…

[Scared-cpa]

@kenckang What are you averaging/trending on Ninja MCQ right now?

[kenckang]

im averaging in the 90s now. probably because ive seen every question multiple times now…

[Scared-cpa]

Is that just the normal average or is that the trending average?

I've seen all questions at least once and working on the 221 questions not yet answered correctly. I've done a total of 1,804 questions. Averaging 70, trending 85. That's the “sweet spot” I've always had before when I passed so I hope it will be my sweet spot for this exam, too.

[kenckang]

here's my stats https://imgur.com/a/xLgUk
and ive actually reset all my scores and started over again too. so my total attempts is probably more like 5000.

[Scared-cpa]

Ohhh, that's interesting! My average scores are not nearly that high, but I also haven't done as many questions and I started out with next to no real knowledge on BEC. I've always found I learn best through Ninja and just use Wiley CPAexcel as a “warm up.”

I sure hope we are both as prepared as possible for Friday! My ears and throat are beginning to hurt and the last thing I need right now is to get sick! I'm gonna drink some Emergen-C and hope and pray that I feel better. This is the second or third time I have gotten sick right before sitting for an exam. I don't know if it's bad luck or where I'm so stressed that I'm weakening my immune system to be more susceptible to illness.

What do you plan to do over the next couple days? Today will be my last ‘full day' of studying. I'm hoping to do around 150 questions today, then tomorrow and Thursday maybe 100. I'm going to focus more on flash cards to test memory and look over WC stuff. I just hope that's the right plan. Any suggestions are well appreciated! I feel like it's too late to really learn anything new, so I'm trying to just keep myself mentally primed and ready for Friday.

[kenckang]

yeah getting sick right before the test would totally totally suck.
my plan over the next couple days is basically the same as yours. i was going to do a few sets of mcq and then just read over some WC responses and maybe flip through some flashcards. im scheduled to take the test at 5pm on friday but hopefully i can take the test earlier on in the day. my brain dont work too gud after 5-6pm.

[Scared-cpa]

Sounds like a plan! My exam is at 9 am. I usually get there a little early because the center is 2 hours away and there is quite a bit of road work along the way, so I'm hoping I can start the exam around 8:30. I couldn't imagine sitting around all day knowing I'm taking an exam later! That would eat away at my nerves!

[Scared-cpa]

Is this a weird question or is it just me?

A small vacuum cleaner repair shop is located in a once-quiet, out-of-the way neighborhood. Recently, however, a large entertainment complex that will be used for concerts, basketball games, and other major events was just opened a block from this small business. When determining the fair value of this property, the fair value should be based upon:

A. the use of the property as a small vacuum cleaner repair shop.

B. the use of the property as a small restaurant serving a variety of light meals, exotic desserts, and alcohol.

C. the use of the property as a small restaurant serving a variety of light meals, exotic desserts, and alcohol only if the current owner plans to sell the property.

D. the average of the property value based upon its current use and the highest and best use.

[kenckang]

yeah i got that problem wrong when i first saw it too.
isn't there a different question in ninja mcq that asks what the difference between FMV and FV is? I think the answer was that in FMV the seller is hypothetical and in FV there is a specific seller?

[kenckang]

i think one way to look at it is the fair value of a house you hypothetically purchased a few years ago. regardless of whether you aim to sell it or not, the fair value would have certainly increased allowing you to perhaps take a loan out of the equity. if you checked zillow, it would show the appreciated value of your house regardless of whether or not you actually plan to sell it.

[Scared-cpa]

I originally chose D, then I thought maybe it was A. B and C just seem like such random jumps to me. I can understand that the owner would consider turning the vacuum repair shop into a restaurant as a business would be a lot more successful in that specific area of town with the entertainment complex moving in. But that doesn't mean you value the vacuum shop as a restaurant if it isn't being turned into a restaurant? That just makes no sense to me. I could understand that response if the question said, how would the business be valued if he was considering changing the nature of the business. Otherwise, it's just random to me and I don't think I would ever pick the correct answer in a test environment. I feel like if I had a restaurant next to a church and I valued the restaurant as a Christian book store.

[kimphan]

Hello,

I cannot believe my test day is tomorrow!!! Do you happen to know the concept of “change continuum”?

Control baseline
Change identification
Change management
Control vamidation/update.

I don't know how to relate this concept to ERM framework…

Kim

[dbacpa]

I've seen conflicting responses to this. Are you supposed to sign your name at the end of a memo? Becker does not include any kind of signature at the bottom of their memos.

[Author]

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