BEC Study Group Q1 2017 - Page 19

Viewing 15 replies - 271 through 285 (of 813 total)
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  • #1443810
    Anonymous
    Inactive

    You are using hours or materials spent when you are calculating an efficiency variance, which compares actual hours/materials spent for actual output, vs. what they should have spent on these actual units at standard rates. When you are looking at a spending variance (like above) you are comparing standard and actual prices based on actual output. I hope this helps!

    #1443827
    mooseonloose
    Participant

    why is it unfavorable, I thought when “Actual” is less than budgeted or standard, its favorable. help!

    #1443840
    Anonymous
    Inactive

    @mooseonloose Don't think of unfavorable/ favorable as absolutes when you're looking at the format of the equation (ex. ‘Actual>Budgeted, so it must be unfavorable'). Instead think about it logically.

    For example, if budgeted sales units were 10,000 units and you actually sold 11,000 your ‘Sales Volume Variance' is favorable. “We budgeted that we would only be able to sell 10,000 units, but we actually sold more than we thought we could” (even though Actual > Budgeted) it is favorable.

    Another example would be; The Standard budgeted price for materials were $5 per unit, 10,000 materials were actually purchased for $6 each. Here, the outcome of the Materials Price Variance would be Unfavorable. The ‘reasoning' behind it would be “We budgeted that we would only need to spend $5 per material purchased, we actually had to spend $6 which costed us more than expected”

    Use logical reasoning when evaluating the variances to determine if the outcome it favorable or not. Compare the results to what you're trying to evaluate (Material price, Labor efficiency, etc.)

    Hope that Helps!

    #1443854
    Anonymous
    Inactive

    It should be favorable, in fact explanation says it is.. Strange!

    #1444046
    pharaoh
    Participant

    Hi all,

    I don't have this disposable income thing in Roger's course but I've seen it few times on Ninja, does anyone know if this is something I should memorize?

    Gross domestic product (GDP)
    – Depreciation

    = Net domestic product (NDP)(at mkt cost)
    – Indirect business taxes

    = Net national income (NNI) (at factor cost)
    – Corporate income taxes
    – Undistributed corporate profits
    – Social Security contributions
    + Transfer payments

    = PERSONAL INCOME
    – Personal income taxes

    = DISPOSABLE INCOME

    FAR 8/2016
    AUD 1/2017
    REG TBD
    BEC TBD

    #1444050
    Anonymous
    Inactive

    Took BEC today and I am again more baffled by performance than any other exam. First testlet went fine, second was wicked hard (didn't happen last time), and the third was noticeably easier than the second. WC were not very hard but one was very vague and I hope that it is the pretest one. All in all I received a very fair test on which the few questions I was unsure about were easily narrowed down to the two best options. Now I wait. Good luck to all others testing soon and this will be the first score release that I actually stay up for my score. My worst fear is the bubble which held my score up for 3 extra days last window. I don't think there was anything prep wise I could have done better so if I don't get the magic 75 I anticipate the new test format to help me more than hurt.

    #1444205
    Anonymous
    Inactive

    @cpasomedaymaybe-taking my test on Saturday! Thanks for your assessment-super helpful! Without exam disclosures, was there anything where you felt completely unprepared? The testlet you said was hard was it just lots of calcs, formulas or was it just obscure? at this point I don't know what else I could study… And what prep course did you use?

    @Pharaoh-Becker does not cover this at all either-I was going to google it today, just in case.

    #1444223
    mooseonloose
    Participant

    residual income is 80,000 and net income is 20,000. No debt and 10% equity. what is cost of capital?

    #1444230
    Matt
    Participant

    Thanks anyatver

    I'll take a look and process what you said when I get home.

    FAR 74

    #1444233
    Matt
    Participant

    Pharaoh I was thinking the same thing, I'm going to spend a half hour going over that thing the next time my brains stops multiple choicing.

    FAR 74

    #1444242
    Anonymous
    Inactive

    This problem makes no sense… Is this for real? How can NI be less than residual? And what is equity 10% of? I am super confused…

    #1444250
    mooseonloose
    Participant

    @anyatver My co worker sent me this question and told me to figure it out. There must a flaw in this question.

    #1444253
    mooseonloose
    Participant

    anyone have a breakeven point in dollar example they can share with us.

    #1444266
    Anonymous
    Inactive

    @mooseonloose-just the fact that RI is greater than NI makes no sense. By definition residual income is “leftover” between NI and required return on assets…. If you had the total residual income and total assets, then you could totally calculate the required return by working backwards….

    #1444269
    Anonymous
    Inactive

    variable costs are 60%, and total fixed costs are 100,000, what is BE in dollars?

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