[jeff]

Welcome to the Q1 2016 CPA Exam Study Group for BEC.

Some BLITZ videos to help your exams: https://www.another71.com/ninja-blitz

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

[monikernc]

Standard costing is different than absorp and variable.
Standard costing is one of three costing methods: standard, normal, actual. Standard costing applies a standard input at a budgeted rate.
You use standard costing rather than process costing when you have costs per distinct unit like a table. Process costing is used for things like oil. process costing uses equivalent units to assign costs.
Absorp and variable costing are cost reporting methods. Absorp is GAAP. variable for internal reporting. The big difference is that absorp applies fixed costs to COGS.

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[monikernc]

I listen to ‘Your Weekly Constitutional' every week – great podcast, highly recommend it if you are interested in Constitutional issues or its history.
For BEC, econ, i found this week's episode a productive break from mcq's. Keynes, deflation, 20th century monetary and fiscal policy, GDP (sans Net Exports). I recommend as a pleasant supplement for an hour or so. Lots of other good episodes available on all things Constitutional. Enjoy!

https://ywc.podomatic.com/entry/2016-01-24T09_30_33-08_00

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[FAR_WARS]

“Standard costing is one of three costing methods: standard, normal, actual.”

“Absorp and variable costing are cost reporting methods”

What is the difference between a costing method and a cost reporting method?

FAR- 80
BEC- 75
AUD- 78
REG- ?

[monikernc]

I agree it is not clear but this is how I interpret it. Costing method is how you allocate costs and/or budget costs. cost reporting is actual costs in financial statements. Absorp for external reporting, var for either internal or external.
I had the same questions and this is what I summize. Clear as mud?

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[FAR_WARS]

not quite-

I thought that Absorption (gaap) was external or internal
and
var internal only (because not GAAP).

FAR- 80
BEC- 75
AUD- 78
REG- ?

[monikernc]

you are right, i flipped them.

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[FAR_WARS]

I am still not clear on the differences between Costing Methods and Costing Systems. Is this correct?

Costing Systems: (Used throughout year to allocate costs to separate products/services)
-Job Order
-Process (Fifo and W.A.)
-ABC

Costing Methods: (Used at year-end to report Inventory)
-Absorption (Full) = GAAP books.
-Variable (Direct) = Our Books.

FAR- 80
BEC- 75
AUD- 78
REG- ?

[monikernc]

Costing Systems: (Used throughout year to allocate costs to separate products/services)
-Job Order – for distinguishable products
-Process (Fifo and W.A.) – oil, etc
-ABC _ uses cost pools to allocate overhead

Costing Methods for inputs to production: standard method: std costs are developed for all inputs, DM, DL and OH. normal costing: DM and DL at actual and OH is Actual input at standard rate, Actual costing uses actual costs for DM, DL, OH.

Cost reporting:
-Absorption (Full) = GAAP books.
-Variable (Direct) = Our Books.

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[monikernc]

farwars, i will post answer to your last question about product mix breakeven when i get home tonight!!!! i missed you all so much!!
bad server.

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[FAR_WARS]

You saved it? Nice.

Today I am doing Budgeting and Variance Analysis.

FAR- 80
BEC- 75
AUD- 78
REG- ?

[1dayatatime]

I swear I'm more overwhelmed by this section than I was for Audit or Reg. This is a bunch of memorization with material that doesn't build upon itself. It's all scattered, random information. It's stressful because these review questions on Becker with math contain so much information to process (most of it just there for the sake of confusion and wasting time) that I struggle to keep up with the timing guidelines. I finished both my previous sections with at least 45 minutes to spare and I'm usually an efficient test-taker. It's very frustrating.

AUD - Pass
REG - Pass
BEC - Pass
FAR - Pass

[MaineTrainTootToot]

Hi All,
I am in for 2/29. Starting studying tonight as I just took REG this morning and this NTS for BEC expires on the 29th. Any tips (things to memorize from the start) would be a great help!

FAR: 64, 70, Q2
AUD: 71
REG: Awaiting Score
BEC: 2/29

[FAR_WARS]

How many different variances do we need to know how to calculate?
Is it 1 spending and 1 production for each:

-DM
-DL
-fOH, vOH

and also both fixed and variable flexible budget variances?

FAR- 80
BEC- 75
AUD- 78
REG- ?

[monikernc]

Farwars, prod1 75% of sales, SP$10 VC$6, prod2 25% of sales SP$25 VC$13, breakeven net income = $212,000. How many units of prod1 are sold at breakeven point?
the long answer, using the revenue equation set = to breakeven net income, based on the product mix, is:
.75x(10-6) + .25x(25-13) – 100,000 = 212,000, solve and substitute result, 52000=x
then plug x back in to get, .75(52,000) = 39,000 for units of product 1 at breakeven.

The short answer is that you have to add fixed costs $100,000 + breakeven net income $212,000 = $312,000, then divide by the contribution margin based on the product mix = .75(10-6) + .25(25-13)
312,000/6= 52,000, then .75(52,000) = 39,000 for breakeven units of product 1.

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[monikernc]

Farwars, 10 total. I have the flexible budget variance, sales price variance, plus the dm and dl price, dm and dl efficiency, variable OH spending and efficiency, fixed overhead spending and efficiency variances. Ninja has questions for all of them.

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[Author]

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