[jeff]

Welcome to the Q4 2016 CPA Exam Study Group for BEC.

If this is your first post in the study group – please post your target exam date (just the time frame to preserve your anonymity), and your past history with this exam (optional, of course).

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

[CPASF1]

Kindly explain:
What is the effect when a foreign competitor's currency becomes weaker compared to the U.S. dollar?

When I read this question, my thought process was that since the foreign currency becomes weaker then that means that US goods for the foreigners would be more expensive and that the foreign goods for US people would be cheaper so I chose “the foreign company will be disadvantaged in the US market” since if they bought goods in the US it would be more expensive for them, but then I thought if they sold goods here they would be at an advantage. then I got confused because i don't feel like the question specifies whether the foreign company is buying the goods or selling them because according to that the answer would change, right? Can someone please explain why it's “the foreign company will have an advantage in the US market”.

[lilitvar]

Hey guys, I took FAR in October (pending result 11/4), studying for BEC to take this December. Hoping for some nice disucssions in this forum!

Lily

[jeff]

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

[KaliKingz]

D

[Ukulele2011]

The exam went a bit differently than I expected on Friday. The first testlet gave me few, if any, difficulty. The topics and questions were all roughly in line with concepts from the Wiley text and Ninja's MCQ. The second testlet felt like the same level of difficulty as the first, which is concerning based on how the test adapts to your performance. Somewhat relieving was that the third testlet's difficulty markedly increased, but I still felt like I did well on it. The WC sections dealt with BEC themes and didn't catch me too off guard.

Using the Wiley Textbook and then Ninja's MCQs prepared me very well for this section. I intend to do the same thing for my next exam. Assuming I passed the BEC exam, I intend to do AUD next as it is the other section set to change in 2017. I'll begin studying for AUD this weekend with the intent of taking it in early to mid-February depending on how studying progresses.

[as]

Thanks guys for sharing your views on ur examination. Its helping me a lot in preparation and giving me some confidence. My test is due in this week.

[Indiva]

Ukulele2011- how long did you study for BEC? Was it your first section?

[CPASF1]

can someone please explain this:

What is the effect when a foreign competitor’s currency becomes weaker compared to the U.S. dollar?

When I read this question, my thought process was that since the foreign currency becomes weaker then that means that US goods for the foreigners would be more expensive and that the foreign goods for US people would be cheaper so I chose “the foreign company will be disadvantaged in the US market” since if they bought goods in the US it would be more expensive for them, but then I thought if they sold goods here they would be at an advantage. then I got confused because i don’t feel like the question specifies whether the foreign company is buying the goods or selling them because according to that the answer would change, right? Can someone please explain why it’s “the foreign company will have an advantage in the US market”. thanks!

[Anonymous]

Just think of how China's strategy to devalue its currency has impacted the US.
Why does Walmart carry more imported products from China than local products?
Check this out: https://www.theguardian.com/business/2015/aug/11/china-devalues-yuan-against-us-dollar-explainer

[lilitvar]

@CPASF1
Hi, if i am having trouble with currencies I just put some numbers to it.
E.g. if 1€=1.13 initially, German company sells cars for say $100,000 in the US, this would mean firms revenue is €88,496. If the Euro falls, say to 1€=1.10, then for the same 100,000 the company would have earned 90,909€ .So basicly, without doing anything else, the company earned more (had an advantage).
As a side note, this is basicly why Germany is bailing out Greece, because of Greece the Euro stays weak, and Germany being an export country has such and advantage that it even pays off to pay Greece's debt 🙂 hope this helps.

Lily

[hhung1485]

Alright everyone. Need a little advice from someone who has taken Bec before.

Finishing off chapter 3. Of course the dread formulas have hit.

Return on Invest, Asset etc

Especially this damn Dupont ratio.

Now what is the suggested time to devote to thee formulas. The examples dont see hard since I have the formulas in front of me.

Do we have to know the formulas for the test. Memorization?

FAR - 93
REG - TBD
BEC -
AUD -

[Ukulele2011]

I'd studied since mid-August, primarily for 6 hours a day on Fridays-Sundays. I studied very little during the week. The last weekend in September through test day, I still only studied on weekends but the hours I put in jumped to probably 8-10 hours per day. Altogether, I'd say I studied 130-150 hours. BEC was my first section. I hope I only need to take it once. I'll find out on November 22nd if I passed.

[Anonymous]

@jaivin3 I've also encountered what seems like contradictory concepts with the variable cost method. I think logic goes, “contribution margin” is selling price minus all variable costs and not to be confused with gross margin that uses COGS components.

[nk522]

Hi everyone, took audit this week and aiming to take BEC first week of December. Is a month enough to prepare for this section? Any tips? I work part time for now, so i typically have 4 full days a week that I can study. Thanks!

[df13]

Taking BEC on election day Tuesday! Gone through whole Wiley CPA Excel BEC course in 2 weeks but felt like most of their questions were to easy (A lot of them are written by CPAExcel authors and not actual past exam questions) so I purchased Ninja MCQ. Currently doing as many of them as I can and reviewing Wiley flashcards and focus notes periodically. God help me.

[Author]

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