[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

[NYaccountingstudent]

Where Im at right now:

-BEC on Thursday
-Halfway through adaptive learning
-Trending Score of 67%
-First Becker Final Exam i got a 60% (Multiple Choice Only)
-Im taking Becker Final Exam 2 tomorrow

Question for you guys:

How should i prepare for the writing portion?
Ive completely disregarded preparing for it up until this point because everyone said its not too hard (Edit: After reading the past few pages of this thread….Whats a buzz word?)

[FAR_WARS]

@save, here is my take:

“maintain a 6% reserve and charges 1% commission on the amount of receivables.”
would not make sense to multiply by 90/360 here bc nothing is accruing. Sort of indicates just the net R amount?

“The net proceeds would be further reduced by an annual interest charge of 10%.”
multiply by 90/360 bc it specifies annual interest charge, and interest always accrues.

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

[Anonymous]

Silly question. Normal spoilage is considered an OH variable cost right? Also freight out is a selling expense but freight in is considered an OH variable cost right?

[FAR_WARS]

@cortes

Yes both Normal spoilage and freight-in are charged to factory overhead (inventory cost}.

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

[FAR_WARS]

As part of the benchmarking process, what are the 4 categories of a company's costs of quality, and what are some examples of each?

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

[Anonymous]

1. Appraisal
2. Prevention
3. Internal
4. External

1 & 2 are Conformance
3 & 4 are Nonconformance

Appraisal
4 [MIST]
M – Maintenance of the Laboratory
I – Inspections
S – Statistical Quality Checks
T – Testing

Prevention
8 [RESISTER]
R – Redesign of product
E – Employee training cost
S – Search for high quality suppliers
I – Improvement/Quality improvement projects
S – Suppliers evaluation
T – Training costs
E – Engineering design
R – Redesign of processes

Internal
6 [TODDLERS]
“TDDLRS”
T – Tooling Charges
O
D – Disposal Costs
D – Downtime
L – Lost Unit Cost
E
R – Rework/ Reinspection/ Retesting Costs
S – Scrap

External
7 [ReWALL]
“RRRWALL”
R – Reengineering an external failure
R – Repair/Product Repair
R – Recall/ Product Recall
E
W – Warranty Costs
A – Returns & Allowances
L – Liability Claims (Complaint)
L – Lost Customers (Complaint)

[Anonymous]

What do you think of inspection expenses? I've seen some MCQs from Becker and NINJA that inspections / inspection expenses/ inspection costs are categorized under either Appraisal or Prevention.

Can anyone get this straight?

[FAR_WARS]

“quality inspectors” is appraisal. What term do they use for prevention?


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

[Anonymous]

As part of prevention costs, “INSPECTION EXPENSES”

[SaveBandit]

@Amor D

I've noticed that too.

In the book it even lists plain “inspection” under both appraisal and prevention. Super annoying.

4 for 4

FAR 85
AUD 94
BEC 86
REG 90

[SaveBandit]

Which one of the following statements concerning cash flow determination for capital budgeting purposes is not correct?

A. Tax deprecation must be considered since it affects cash payments for taxes.
B. Relevant opportunity costs should be included in cash flow forecasts.
C. Net working capital changes should be included in cash forecasts.
D. Book depreciation is relevant since it affects income.

I get why the answer is D, but seriously, how in the Sam Hill would you factor in opportunity costs to a cash budget? Opportunity costs are typically implicit costs, no? I've never seen a cash budget that factored in opportunity costs. I don't get how that's even possible.

4 for 4

FAR 85
AUD 94
BEC 86
REG 90

[FAR_WARS]

i think “Relevant” is the key word?

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

[FAR_WARS]

If an increase in government purchases of goods and services of $20 billion causes equilibrium GDP to rise by $80 billion, and if total taxes and investment are constant, the marginal propensity to consume out of disposable income is

a. 0.75
b. 0.25
c. 1.25
d. 4.00

20/80 = .25 MPS ( how do I know this is MPS and not MPC?)
1-.25 = .75 MPC (how do I know this is MPC and not MPS?)

is MPC usually bigger than MPS?

anyone have a question where MPS was bigger than MPC?

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

[payaza2000]

@FAR_WARS

I think MPC is usually larger than MPS

FAR 5/6/2015- 84
REG 8/3/2015 - 87
AUD 10/25/2015- 69 1/20/2016 -75
BEC 2/26/2016- 80

Thank you God

[FAR_WARS]

Assume that the three-month forward rate for the euro is $1.367 and the spot rate is $1.364. What is the forward premium or discount on the Euro?

a. 0.88% premium.
b. 0.88% discount.
c. 0.23% premium.
d. 0.23% discount.

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

[Author]

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