[jeff]

@h0wdyus

Incorrect

The answer is B. Comparable sales.

“The use of comparable sales is not an income approach to valuation of a business, it is a market approach. Under the comparable sales approach, the value of a business is determined by comparing it to other entities with comparable characteristics for which the value is more readily determinable.”

This was a tricky one

AUD - 79
BEC - 80
FAR - 76
REG - 92

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

[M.O.D.]

Actual costing is the historical cost that the firm paid for the product. It is the cost used in preparing financial statements according to GAAP.

Normal costing is the overhead cost averaged over the seasons, usually one year. (used to set overhead rates)

Currently attainable (practical) standards: expected to be achieved with well-trained workers, allowance for normal spoilage and downtime (possible but difficult to attain) (used to set standards)

Ideal (maximum/theoretical) standards: set under optimal conditions, no waste, downtime, most skilled workers (sometimes used for JIT/Lean production goals)

Guys, you have to know this basic cost accounting.

BA Mathematics, UC Berkeley
Certificates in CPA and EA preparation, College of San Mateo
CMA I 420, II 470
FAR 91, AUD Feb 2015 (Gleim self-study)

[M.O.D.]

Concentration banking is using regional banks (which transfer to a headquarters bank), in conjunction with lock-boxes to speed up check receipts.

BA Mathematics, UC Berkeley
Certificates in CPA and EA preparation, College of San Mateo
CMA I 420, II 470
FAR 91, AUD Feb 2015 (Gleim self-study)

[GoVPI]

Stole.. what program are you using?

MOD.. I feel a consensus that most people on this board struggle with cost. Maybe Becker isn't strong enough on it.

BEC - Passed

AUD - 74 🙁

REG - TBD

FAR - TBD

BEC 8/14/14 - Passed
Graduated from college 12/13/14
AUD 8/31/15 - 74. Retake - Passed
REG
FAR

[M.O.D.]

Questionable (trick?) question

Which of the following nonvalue-added costs associated with manufactured work-in-process inventory is most significant?

A. The cost of materials that cannot be traced to any individual product.

B. The cost of labor that cannot be traced to any individual product.

C. The cost of additional resources consumed to produce any individual product.

D. The cost of moving, handling, and storing any individual product.

@14

Stole is using Gleim plus some other test banks as well.

What does Becker cover under cost accounting?

BA Mathematics, UC Berkeley
Certificates in CPA and EA preparation, College of San Mateo
CMA I 420, II 470
FAR 91, AUD Feb 2015 (Gleim self-study)

[stoleway]

@M.O.D….is my answer to your question correct?

@CPAin14…..Im using Gleim, Ninja, WTB, and cpareviewforfree, its my last exam and I'm leaving no stone unturned. I am struggling with some random concepts in Ninja though. I hope it gets better before exam day.

@MOD…….D. The cost of moving, handling, and storing any individual product.

The cost of carrying inventory is a major headache for most firms, but it actually doesn't add any value to the products.

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[M.O.D.]

Practical capacity is NOT the right answer. It is used to set standards but not the overhead rate.

Normal capacity is smoothed for seasonal changes and is used to set the overhead rate.

Please read my explanations above.

Yes, cost of moving is a non-value added activity, but why would it be called “significant”? Is it because it is the biggest? I would not think so. Corporate administration (including accounting) are non-value added activities as well and are likely even more significant.

And the other items on the list are not even non-value added activities: they are all overhead applied to the product.

BA Mathematics, UC Berkeley
Certificates in CPA and EA preparation, College of San Mateo
CMA I 420, II 470
FAR 91, AUD Feb 2015 (Gleim self-study)

[Masso]

[M.O.D.]

Which of the following systems assists with nonroutine decisions, serves strategic levels of the organization, and helps answer questions regarding what a company’s competitors are doing, as well as identifies new acquisitions that would protect the company from cyclical business swings?

A. Decision support system.

B. Management information system.

C. Executive support system.

D. Transaction processing system.

BA Mathematics, UC Berkeley
Certificates in CPA and EA preparation, College of San Mateo
CMA I 420, II 470
FAR 91, AUD Feb 2015 (Gleim self-study)

[Masso]

I think it is executive support system

[M.O.D.]

ESS is correct.

What do the other ones do?

BA Mathematics, UC Berkeley
Certificates in CPA and EA preparation, College of San Mateo
CMA I 420, II 470
FAR 91, AUD Feb 2015 (Gleim self-study)

[Zackrampage]

C I believe.

FAR - 62 , End of aug 2015
BEC - 67, 67
AUD - TBD
REG - TBD

[Masso]

DSS examine data and present choices to manager

MIS receive info from TPS, aggragates them and reports them into useful format

TPS is a type of business info system. it includes batch processing and online processing

[GoVPI]

@ MOD, Im relistening to Becker cost chapter tonight. I will get back with you.

Decision support system – extension of a management info system that provides tools in support of decision marking

Management information system – provides management feedback on daily operations of financial and non financial reports internal and external to help make decisions.

Executive support system – answered in question above

Transaction processing system – processes transactions such as payroll (typically high volume transactions)

BEC - Passed

AUD - 74 🙁

REG - TBD

FAR - TBD

BEC 8/14/14 - Passed
Graduated from college 12/13/14
AUD 8/31/15 - 74. Retake - Passed
REG
FAR

[stoleway]

Let me add some important features to MASO explanation

DSS examine data and present choices to manager- Deals with unstructured and complex data, this requires human judgement and insight

MIS receive info from TPS, aggragates them and reports them into useful format- data is usually structured and easy to interpret, in summary it gives you automated responses

TPS is a type of business info system. it includes batch processing and online processing- This is a subset of MIS, information from here is transferred into MIS

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[M.O.D.]

Nice. Good job everyone. This is how we should answer all questions on here, with full explanations and with showing our work.

Also, you should have a note file with all these summary information, in your own words.

My file is on word and some 30 pages long.

These notes you refine throughout practice, and should have memorized before the exam.

If you fail then it is because your notes were incomplete or not memorized, so you can continue building up your notes for the next exam…

BA Mathematics, UC Berkeley
Certificates in CPA and EA preparation, College of San Mateo
CMA I 420, II 470
FAR 91, AUD Feb 2015 (Gleim self-study)

[Author]

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