[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

[Anonymous]

@payaza, I am in DC! If you are looking for a recruiter let me know and we can trade e-mails. FWIW, right now there is a huge demand for people with Internal Control/Internal Audit backgrounds (Federal Government needs to get a lot of agencies audit ready).

[user2701]

I have given BEC exam. My very first. 18 months time starts from the day I clear first exam. What if I do not clear this time? Will 18 months schedule start off ? Or will it start from April only after I give a retake & its scores are out?

BEC- 43(Feb'16), Retake-June 10, (Wiley text book/WQB/NINJA MCQ)
REG- TBD
FAR- TBD
AUD- TBD

[monikernc]

In the final countdown so friday nights are study nights. Wooo. Hooo. No exclamation point.
Jdpowell – how was exam? Safe travels home.

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

[Zyx]

I'm taking BEC on this coming Monday. Can you guys please see if I understand fixed overhead variance correctly.
Efficiency (spent) variance budgeted fixed overhead -actual fixed overhead
Volume (used) variance budgeted fixed overhead – fixed overhead applied
Is there anything else in fixed overhead variance I should know?

REG: 77 x2
BEC: 81 x3
FAR: 68 retake 10/1
AUD: 8/27

[Moeshow]

For capital budgeting like NPV, payback method, AAR and IRR with old equipment salvage value do we always subtract the salvage value left over from old equipment off the new equipment?
Ex: My old equipment has a salvage value for $5,000 and my new equipment has cost $40,000, so I would take that $5,000 off all the new equipment, correct? And this would include all the methods I mentioned above, correct as well?

BEC 2/26/2016 81
FAR 05/2016

Purely Roger CPA Review, for now!

[MaLoTu]

xyz11 – I am going to write out how I remember them from Becker:
P (performance) dA = Actual QTY*(Std. Price – Actual Price)
U (usage)——– dS = Standard Price*(Std. QTY-Actual QTY)
R (rate) ———- dA = Actual Hours*(Std. Rate-Actual Rate)
E (efficiency)—- dS = Standard Rate*(Std. Hours – Actual Hours)

Last time I wrote this as soon as I got into the testing center. DADS DADS helps you to remember what is being multiplied. So, I start with PURE – then DADS – then I can plug in the other parts of the equations from those.

[MaLoTu]

Moeshow – I am not 100% sure what you are asking. In NPV, the depreciation is multiplied by the tax rate.

NPV – Annual Net CF * (1- Tax rate)
——-+ Depreciation * Tax rate
===== Net Inflow * PV multiplier

There are PV calculations that may need to be made … It would be easier to explain it using an example.

If you are calculating costs, It would be selling price minus NBV of the old – a loss increases cost and a gain decreases cost.

[cpagal]

Moeshow – Yes you are correct. If you are deciding to replace a piece of equipment with a new piece that will increase your cash flows, you subtract the salvage value of selling the old machine from the purchase price of the new machine. This will be your “initial investment” used to calculate all the rates.

That said, there wasn't a single example in my Gleim MCQ that had an old machine with a salvage value…

FAR - 08/30/15 - 90
AUD - 11/12/15 - 92
REG - 01/19/16 - 82
BEC - 02/29/16 - 83

Passed all on 1st attempt using GLEIM (full program) and NINJA (MCQ only)!!!

Louisiana Licensed CPA

[Zyx]

MaLoTu, thanks lot. Now I am making sure that I have stuffed all freaking formulas in my brain hopefully to pass this time!

Do we really subtract salvage value from the new machine? I thought initial cost is the cost of the new machine plus installation and delivery costs if any, nothing to do with salvage value in determining initial cost! Salvage value is the estimated resale value, might not be real cash from selling. Am I wrong?

REG: 77 x2
BEC: 81 x3
FAR: 68 retake 10/1
AUD: 8/27

[cpagal]

It is salvage value of the OLD machine we are speaking about. Salvage value of the new machine increases estimated cash flows in the final year, so you would add that estimated cash flow to the final year only.

FAR - 08/30/15 - 90
AUD - 11/12/15 - 92
REG - 01/19/16 - 82
BEC - 02/29/16 - 83

Passed all on 1st attempt using GLEIM (full program) and NINJA (MCQ only)!!!

Louisiana Licensed CPA

[MaLoTu]

Yes, depreciation for the NEW machine is multiplied by the tax rate and then added to the annual cash flows because it is a tax benefit.

As for the old, that is calculating initial outflow. I don't know if depreciation plays a role other than the original price of old asset minus accumulated depreciation will give you NBV …

Cpagal- I just realized salvage value was in question not depreciation! Gah! Going to bed, lol.

[MaLoTu]

Cpagal- that makes sense about the salvage value of the old, but Becker says to determine the G/L by the selling price less the NBV of the old which should still have a value equal to or in excess of the salvage, right?

[Zyx]

Thanks cpagal. Im still confused that Moeshow subtracts salvage value of the old out off the new machine. I just have not seen any question asking valage value.

REG: 77 x2
BEC: 81 x3
FAR: 68 retake 10/1
AUD: 8/27

[Zyx]

Im panic now, taking bec on Monday!

REG: 77 x2
BEC: 81 x3
FAR: 68 retake 10/1
AUD: 8/27

[jpowell31]

@user 2701, each exam expires after 18 months so if you don't pass all four in 18 months, the first one expires….the new time to pass the remaining/failed exams is 18 months after taking the second exam you passed.

@moniker…I have NO IDEA. it was definitely medium (breezed through in 20 minutes), TORTURE (I FLAGGED 12 QUESTIONS), medium (clearly didn't nail that second testlet, which is very worrying). I found the questions either painfully easy (like, someone who didn't study should be able to guess this correctly which I found almost frustrating) or completely out of left field. There was one calc and two non-calc questions I'm still racking my brain about …….I can only pray these were all pretest questions and that I made educated guesses otherwise. It's difficult to say since questions are weighted differently and pretest questions don't count. The writing component was fine but who knows how those things are graded…I just hope it's enough for a 75!
I have a crazy couple of weeks at work ahead and a bunch of wedding festivities thereafter that will hopefully keep my brain occupied while I wait FOREVER for my score. I'll probably keep doing questions here and there to keep things relatively fresh in my mind until score release…my ninja for BEC expires just after so I'm hoping I don't have to buy it again. In the meantime I will enjoy sleeping in and going out with friends tomorrow.

Happy studying and good luck everyone!!

[Author]

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