[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

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

[Masso]

The following were among Gage Co.’s costs during the month just ended:

Normal spoilage

$ 5,000

Freight out

$ 10,000

Excess of actual manufacturing costs over standard costs

$20,000

Standard manufacturing costs

$100,000

Actual prime manufacturing costs

80,000

Gage’s actual manufacturing overhead was:

A. $40,000

B.$45,000

C.$55,000

D.$120,000

[stoleway]

This means that Actual cost was greater than Cost Applied

Therefore

20,000 = Actual – 100,000

Actual= 120,000

Actual Manufacturing cost = DL + DM + Overhead

If prime cost = 80,000, then Overhead = 40,000

REG -63│ 84!!
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Mass-CPA

[Masso]

Correct

[stoleway]

Give me 3 duties of a DBA?

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Mass-CPA

[Masso]

No clue – I am not that far on IT

[stoleway]

@Maso

Don't worry, it is directed to the group so anyone can answer.

REG -63│ 84!!
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Mass-CPA

[BEACPA]

Hello Future CPAs,

Does anyone else out there feel like Operations Management – Cost Measurement Methods and Techniques from B1 is the bane of your existence? It's killing me, with 107 MCQs that are taking well over 5 minutes on average to complete. I expect to reduce this time as I become more proficient, but it's currently extremely miserable.

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[rzrbkfaith]

@BEACPA hang in there because it doesn't get too much better. I'm on B4 and it hasn't gotten any better. The questions are lengthy and there is an insane amount of homework, but practice makes perfect (or passing in this case!). Hang in there. Its a marathon and not a sprint (or at least I try to remind myself of that).

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[Hudiniwannabecpa]

@ stoleway

1. Maintain Database 2. control access to database & 3… (I d k a third)

[klink24]

Assume that management of Trayco has generated the following data about an investment project that has a five-year life:

Initial investment:

$100,000

Additional investment in working capital:

$5,000

Cash flows before income taxes for years 1 through 5:

$30,000

Yearly depreciation for tax purposes:

$20,000

Terminal value of machine:

$0

Cost of capital:

8%

Present value of $1 received after 5 years discounted at 8%:

.681

Present value of an ordinary annuity of $1 for 5 years at 8%:

3.993

Assume that Trayco’s marginal tax rate is 30% and all cash flows come at the end of the year. Calculate the net present value of the investment of the project.

A. $105,000

B. $ 3,585

C. $ 11,216

D. $ 6,216

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4 up, 4 down, in 4 months.

Licensed 9/22 in NC.

[stoleway]

1.design, develop, control and maintain database

2.assign user passwords

3.establish security measures for database

Question…

Which IT personnel is responsible for software support?

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Mass-CPA

[M.O.D.]

Database administrators:

developing and maintaining databases,

establishing control to protect their identities,

responsible for database related schemas, software, and hardware

Re cash flow problem:

Incoming cash flows:

30 x .7 = 21 x 5 years

20 x .3 = 6 x 5 years

5 for 1 year (#5)

27 x3.993 =107811

5 x .681 = 3405

total = 111216

Outgoing cash flows

100 year 0

5 year 0

total 105000

net present value 111216 – 105000 = 6216 (D)

Regarding software support,

I would say that systems programmers support system software and applications programmers support application software.

Operators, although responsible for day to day duties, generally do not have the skills to modify the software, and according to the segregation of duties, should not be able to modify the programs.

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]

Yes, system programmer is correct

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Mass-CPA

[klink24]

Correct. Why is the $5k considered a return cash flow at the end of the 8 periods? That's the part that threw me off.

FAR: 4/19/2014 - 85!
AUD: 5/27/2014 - 90!
REG: 7/18/2014 - 81!
BEC: 8/13/2014 - 84!

4 up, 4 down, in 4 months.

Licensed 9/22 in NC.

[M.O.D.]

@ klink

First, it is 5 periods not 8 (typo?)

When the project is complete, assuming it is complete after 5 years, whatever working capital (say AR) was invested in that project, is paid off (ie customers pay their final bills) and the money returns back to the company. As such, it is considered an investment (loss of use of the money in year 0) and a return on investment in year 5 (without interest).

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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