BEC Review – Exam in 5 days

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  • #196017
    Anonymous
    Inactive

    Hey everyone,

    I have my BEC exam in 5 days so I am just using this to help me review and anyone else who wants to review. We could post formulas and concepts to help us remember, review and discover areas we did not review (because of study materials, etc.)

    Hope you like.

    EOQ – Squareroot (2OD/C)

    Reorder Point – (Average daily demand * lead time) + Safety Stock

    Operation Cycle – Days sales outstanding + Days of Inventory outstanding

    Cash conversion cycle – Days sales outstanding + Days inventory outstanding – days payable outstanding

Viewing 8 replies - 1 through 8 (of 8 total)
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  • #687521
    Anonymous
    Inactive

    Degree of Operating Leverage – Change in EBIT/Change in Sales

    Degree of Financial Leverage – Change in EPS/Change in EBIT

    Degree of Total Leverage – Change in EPS/Change in Sales

    #687522
    Anonymous
    Inactive

    Effective Rate – Interest Expense/Usable Proceeds

    Effective Rate for Compensating Balance – Stated Rate/ 1- Compensating Balance %

    Price Ceiling -if Max price is below equilibrium price then this would lead to a Shortage of supply

    Price Floor -if min price is above equilibrium price then this would lead to a Surplus of supply

    #687523
    Anonymous
    Inactive

    EVA = operating income after tax – (net assets x WACC)

    Residual Income = operating income – (ROR x Invested capital)

    ROI = Return / Investment.

    Any of you know the DuPont ROI?

    @ Angelique – Should the leverage calculation be the PERCENTAGE change instead of simply the change???

    #687524
    Anonymous
    Inactive

    Hi Coquip,

    Yes it should. I was typing as if I was saying it to myself (usually abbreviate and leave out words even though I know it lol) so sorry.

    #687525
    Anonymous
    Inactive

    Price Elasticity of Demand – %Change in Demand/%Change in Price

    >1 Demand is Elastic – Essentially when price decreases then revenue increases

    <1 Demand is Inelastic – Increase in price leads to an increase in total revenue.

    1 – Total Revenue would be the same if price increased

    Marginal Propensity to Consume – Change in Spending/Change in Income-How much you spend when income increases one dollar

    Marginal Propensity to Save – Change in Saving/Change in Income – How much you save when income increases one dollar

    MPC+MPS =100%. What you don't spend you save and vice versa

    #687526
    spatel15
    Participant

    Another View of Op. and Fin. Leverage:

    Op.Lev: EBITDA/EBIT

    Fin.Lev: EBIT/EBT

    Ties well to the 5-point Dupont:

    The ease of it comes from the universal sequence of the terms: Sales, EBITDA, EBIT, EBT, E(NI).

    Start with the Profit Margin (NI/S), & work backwards(or forwards): NI/EBT –> EBT/EBIT –> EBIT/S

    -Intermediary denominators always ends up as numerator somewhere else.

    Only major risk: throwing EBITDA into there.

    #687527

    Anyone have a comprehensive list they'd be willing to share?

    FAR 5/1 - 83
    REG 7/7 - 79
    AUD 11/20 - 85
    BEC 8/27 - ALMOST THERE!!

    3 for 3! Study high, get high grades!!

    #687528
    for425
    Participant

    @Ima_Audit_You Check this out:

    https://www.another71.com/cpa-exam-forum/topic/first-time-poster-bec-formulas

    FAR - 72, 81
    BEC - 76
    REG - 78
    AUD - 61 (1/24), Retake (6/6)

    Materials: Becker
    FAR Retake: + Wiley TB
    REG & AUD: + Ninja MCQ

Viewing 8 replies - 1 through 8 (of 8 total)
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