[jeff]

Welcome to the Q3 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

[AMGcpa]

These NINJA MCQ's for BEC are brutal!

1) are they really similar to the test?
2) are there typically a lot of computational problems on the exams? The ones in NINJA are SO LONG!

[tjy49]

@AMGcpa: I took my test today and my calc questions were not as long as the Ninja ones. I had more concept questions than computations too. I had a few questions that were very similar to some Ninja ones and was grateful to have seen them while studying!

FAR-69, 65, 84 (Feb. 2016)
AUD-86 (May 2016)
BEC-TBD (Aug. 2016)
REG-TBD

Gleim didn't work for me, but Ninja did!

[jad11]

In regard to variances, when do we use formula 1 vs formula 2 below? I get confused with the different terms of usage, volume, efficiency and don't know which formula to use.

1. std rate * (actual qty – std qty)

2. std rate * [actual qty – (actual units * std rate)]

It seems as if actual units * std rate in formula 2 is what is referred to as “applied rate.”

[iamonloose]

I reviewed chapter 1 on becker and scored an average of 80% on the homework. I am really struggle with Activity based costing (ABC), traditional cost system, job costing system, process costing system, variable costing; can someone please simplify these systems. Also if anyone can explain the following question, I would appreciate it.

Which of the following costs would decrease if production levels were increased within the relevant range?
a.Total variable costs.
b.Total fixed costs.
c.Variable costs per unit.
d.Fixed costs per unit.

Choice “d” is correct. In the relevant range, fixed costs are constant in total, but decrease per unit as production levels increase.
Choice “b” is incorrect. Although total fixed costs are constant in total in the relevant range, the call of the question relates to per-unit fixed costs. Fixed costs per unit decrease as production levels increase.
Choice “c” is incorrect. Variable costs per unit remain unchanged in the relevant range, but increase in total as unit volume increases.
Choice “a” is incorrect. Total variable costs increase as total unit volume increases in the relevant range.

[RE2PECT]

Total fixed cost does not change no matter how many units you produce. Think of it like rent for the factory where you manufacture your products.

Total variable cost will increase or decrease depending on how many units you produce. If one unit has a variable cost of $5 it will cost you $500 if you produce 100 units, but it will only cost you $50 if you produce 10 units.

Fixed cost per unit will increase or decrease depending on how many units you produce. Say your factory rent is $1000 per month. If you produce one unit, your fixed cost per unit is $1000. If you produce 10 units, your fixed cost per unit is $100.

Variable cost per unit does not change regardless of how many units you produce.

FAR: 75 Roger & Ninja (notes/flashcards/audio/MCQ)
AUD: 73, 81
BEC: 71, retake 8/29
REG:

[iamonloose]

Thank you for the examines RE2PECT, it really puts into perspective.

[BenB]

Which of the following did not contribute to the decline in the demand for the dollar in the period 2002–2004?

A.
The large U.S. current account deficit
B.
Relatively high inflation rates in the U.S. compared to major trading partners during that period
C.
Relatively higher growth rates in the United States compared to those in Europe and Japan
D.
Strong foreign demand for U.S. government securities, stock and real assets during the period

Answer is D, it makes sense but I don't understand how a high growth rate in the US contribute to a decline in demand for the dollar?

FAR 7/11/16 - 87
BEC 9/9/16
REG TBD
AUD TBD

[csvirk]

@benB question is asking you “did not contribute” So that is why correct answer is D.

FAR: 71, 77!
AUD: 69, 80
BEC: 72
REG: 84

[Anonymous]

Assume that a saver has $5,000 deposited in a savings account and is earning 3% on the funds. The nominal value of the account would be $5,150 at the end of the year. If the inflation rate was 2%, the purchasing power of that $5,150 at the end of the year would be approximately $5,050; and if inflation ran at 4%, the purchasing power would be approximately $4,950.

I know how did they arrive at $5,050.
($5000 x 103% = $5150) / 102% = $5049.0196 rounded off to $5,050

But how did they arrive at $4,950?

[sancasuki]

Do you guys know what types of accounts these are? Are they assets, expense?

Factory Overhead Applied

Factory Overhead Control

[Anonymous]

Here's another illustration of inflation problem that I find really PROBLEMATIC:

If the bank lent Jane $2,000 that is to be repaid in three years and inflation averages 5% above the loan interest rate during the period, a rough approximation of the purchasing power of the principal amount that is repaid would be $1,700. The bank gets repaid in “cheap dollars.”

Where did the $1,700 come from? Please help. Thanks!

[sancasuki]

I guess you could do this:

$2000 X 0.95= 1900
$1900 X 0.95= 1805
$1805 X 0.95= 1715

[sancasuki]

For the previous question:

(5000 x 1.03) / 1.04= 4952

[BenB]

@csvirk

Participant
I did not misread the question. I was referring to answer C.

FAR 7/11/16 - 87
BEC 9/9/16
REG TBD
AUD TBD

[Anonymous]

Thanks, CM for your reply. I appreciate your help.

You were asking about cost accounting. I wish I could help. But I could share with you what I have on my notes.

FOHA or factory overhead applied is one of the three components of factory costs/manufacturing costs (DM + DL + FOHA).
It is the allocated amount of FOH that is applied to WIP based on estimates of production and costs.
I think, Factory Overhead Control is the “T-Account” composed of factory overhead incurred (actual) (debit side) and factory overhead applied (credit side). Since FOHA becomes part of WIP, I think it's an asset account.
 COGM uses APPLIED OH, not actual overhead.
 Actual Overhead Incurred [AOHI]=>includes IM

 Applied OH ≠ Actual OH

+ MOHA
– MOHI [Manufacturing Overhead Incurred]
—————————————————–
Overapplied <Underapplied> Overhead
==================================

Becker’s book B1-Page 48 provides a good illustration of job order costing. I don’t think I understand it in full, but I'd like to show it here anyway.

Job Order Costing

[Author]

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