### BEC Study Group Q1 2017

CPA Exam Forum BEC BEC Review BEC Study Group Q1 2017

This topic contains 813 replies, has 143 voices, and was last updated by  drkarm 7 months, 2 weeks ago.

Viewing 30 posts - 481 through 510 (of 814 total)
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• #1477999

Trucker90
Participant

@jsn3004

I think the key here is ‘flexibility.' The question emphasizes that XYZ's ‘[s]ales and services vary greatly' – implying that flexibility is an important factor when choosing financing sources. Credit card debt, LT Debt, and A/R factoring all have a rigid payment schedule.

#1478004

Rosy0407
Participant

@trucker90 referring to @ksc168 for the second question are you including depreciation? My answer was B no including depreciation.

#1478050

wei ng
Participant

Help me understand this question please!!

The following information is available on Crain Co.’s two product lines:

Chairs Tables
Sales \$180,000 \$48,000
Variable costs (96,000) (30,000)
Contribution margin 84,000 18,000
Fixed costs:
Avoidable (36,000) (12,000)
Unavoidable (18,000) (10,800)
Operating income (loss) \$ 30,000 (\$4,800)
Assuming the tables line is discontinued, and the factory space previously used to make tables is rented for \$24,000 per year, operating income will increase by what amount?
\$13,200
\$18,000
\$24,000
\$28,800
This answer is correct. To make the determination you would compare the amount of revenue from renting the factory space to the contribution margin less the avoidable costs from producing tables. The unavoidable costs allocated to the tables line would be incurred regardless of the decision and therefore are irrelevant. This answer is correct because income would increase by \$18,000 [\$24,000 rent − (\$18,000 contribution margin − \$12,000 avoidable costs].

I know you are supposed to ignore sunk costs in determining these type of questions but if the tables line is discontinued then the 18,000 revenue that it produces would not be generated nor the 12,000 costs that are avoidable if the line is discontinued. Therefore wouldnt operating income increase by the 24,000 net of the unavoidable costs (10,800)?

#1478086

A1lessio
Participant

For all the Becker users how do you feel about the B4 lecture and MCQs? I did fairly well the first time around scoring 68-70% and sometimes higher. I printed out the IT Appendix at the end of the chapter and plan to memorize and read a few pages a night. For people who have taken the test already, will that be enough for the IT?

#1478130

iamstrong
Participant

I went through the Becker lectures and MCQ. I'm now going through the NINJA MCQ. I feel NINJA MCQ are more diccicult- lots more on IT and it covered items not mentioned in Becker. I know people who passed BEC with just Becker but I did not want to take any chances so I'm NINJA MCQ'ing.

I do have a questions- I'm about 2 1/2 weeks from the exam- when do I start rewriting my notes? I've been making “nuggets” and was going to rewrite after I go through all NINJA MCQ. I was thinking of going less on MCQ to rewrite notes and then get to the review stage of NINJA.

Thanks
Rachel

#1478241

Tarheel83
Participant

@trucker90 unfortunately I did not attend UNC for as much as I wanted to. I am a graduate of University of South Florida. The reason for the name is that I was born and raised in eastern NC. I'm originally from New Bern, NC but live in Sarasota, FL now.
Sad week for the Tarheels though. Took a beating by Duke. Hopefully we get them when they play in the Dean dome.

#1478313

Econ_student
Participant

Hi all, does anyone know if due to the new format change that's coming in Q2, if I received my NTS in February, is it only valid for this current quarter?

I went on prometric today and it looks like I can't schedule anything beyond March.

#1478508

CPAIN2K17
Participant

@econ_student You just can’t schedule REG or BEC for after Q1 until after March 11.

#1478604

marimia22
Participant

thanks

#1478940

Tncincy
Participant

just got my nts for Reg, I thought I was going to squeeze it in this window with BEC, nope tax season really busy, hurt my foot, ordered to stay off of it, have to hop to work anyway (it's tax time)….Oh Lord my nerves….can I take any more!!!!! So I think I have to do just one at a time :-(…Determined to get it done.

#1478967

mtaylo24
Participant

Good luck to you Cincy. My nerves are starting to kick in. Rematch next Friday!

#1479031

Tncincy
Participant

Good luck to you mtaylo24, you got this….

#1479336

mcdylan02
Participant

@wei ng The answer to this problem can be difficult to understand. The way that it works is you have to take the net income that is given up minus the new income that is derived from renting the space out. So you toke the contribution margin (18,000) less the avoidable costs (12,000) and it gets you the income that was given up (6,000). You take that less the 24,000 and you get \$18,000 in increased revenue.

#1479516

Jsn3004
Participant

@wei ng

I think i'm going about the question differently than other people.

Think of it this way. If we rent out the facility that's 24,000.
We have unavoidable fixed costs of 10,800.

24,000-10,800=13,200

Now what's the difference between 13,200 and negative 4,800?… Answer: 18,000

I didn't include the contribution margin or avoidable fixed costs because i'm not going to include those when i'm figuring out my profit for renting out the facilities.

Let me know if this makes sense because I know there's other ways of going about this problem.

#1479522

Tarheel83
Participant

@mtaylo24 your going to kill it this time around man!

I got the retake on 3/6 so I won't be too far behind you. I feel good on Corporate Governance and IT, so I am trying to finish up financial Management by tomorrow night, then work on economics. Hopefully u next week I can just run questions non stop until the exam.

#1479532

wei ng
Participant

@jns3004

My mind is freaking blown!! thanks that makes way more sense to me now.

#1479634

mtaylo24
Participant

@tarheel83 Sounds like a plan. I can beast in Gleim but I'm getting slaughtered in Ninja right now. Hoping to turn everything around by the time the weekend is over, or I may be sitting in the extended window as well.

#1479639

bhuekels
Participant

Anybody else worried about the written communication? I'm just worried that they're going to throw something out of left field. I guess you do get points for the format, and as a written question, you can probably try to bs it, even if it is something unexpected.

#1479810

Tarheel83
Participant

Ok I found this post to be really helpful and have tried to post to this forum a few times and it must be too long or something, so I am going to split it up. I got it from the CPA Excel forum for VARIANCES and I love it. I memorized it heading into my first attempt at BEC and although I was close I didnt pass (74), but I know that this formula helped me back then.

Yes – that's my preferred way to calculate the variances. Personally, I find that the following format works particularly well for CPA exam questions – particularly those which provide you with the variance and ask you to solve for the actual/standard quantity or cost.

Here's an example of using this format to solve one of your past exam questions (and one of the most difficult ones, to boot!):

AICPA.060214BEC
Virgil Corp. uses a standard cost system. In May, Virgil purchased and used 17,500 pounds of materials at a cost of \$70,000. The materials usage variance was \$2,500 unfavorable, and the standard materials allowed for May production was 17,000 pounds. What was the materials price variance for May?

Step 1: Fill in blank format with information supplied in question:

____________Qty/Hrs_______Price/Rate_______Total
+ Standard______17,000_____X____???_______=______???
– Actual ________17,500_____X____???_______=_____\$70,000
= Difference_______???___________???______________???

Usage/Efficiency Variance = Difference in Qty/Hrs X Standard Price/Rate
(\$2,500) = ??? X ???

Price/Rate Variance = Difference in Price/Rate X Actual Qty/Hrs
___???__=__??? X ???

Step 2: Wherever you have 2 out of the 3 numbers in an equation, calculate the missing value:

____________Qty/Hrs_______Price/Rate_______Total
+ Standard______17,000_____X____???_______=______???
– Actual ________17,500_____X___\$4.00_______=_____\$70,000
= Difference_______(500)_________???______________???

Usage/Efficiency Variance = Difference in Qty/Hrs X Standard Price/Rate
(\$2,500) = ??? X ???

Price/Rate Variance = Difference in Price/Rate X Actual Qty/Hrs
___???__=__??? X ???

#1479843

Tarheel83
Participant

Ok, well I tried. Now I cant post steps 3 and 4.

#1479781

Tarheel83
Participant

BTW, for anyone having trouble with Variances, or just looking for a sure fire way to approach variance problems, I found this on the CPA Excel Forum when I first took BEC and I remember it helping a lot. I am just getting into Variances again so I figured I would post this to see if it helps anyone else.

I find that the following format works particularly well for CPA exam questions – particularly those which provide you with the variance and ask you to solve for the actual/standard quantity or cost.

Here's an example of using this format to solve one of your past exam questions (and one of the most difficult ones, to boot!):

AICPA.060214BEC
Virgil Corp. uses a standard cost system. In May, Virgil purchased and used 17,500 pounds of materials at a cost of \$70,000. The materials usage variance was \$2,500 unfavorable, and the standard materials allowed for May production was 17,000 pounds. What was the materials price variance for May?

Step 1: Fill in blank format with information supplied in question:

____________Qty/Hrs_______Price/Rate_______Total
+ Standard______17,000_____X____???_______=______???
– Actual ________17,500_____X____???_______=_____\$70,000
= Difference_______???___________???______________???

Usage/Efficiency Variance = Difference in Qty/Hrs X Standard Price/Rate
(\$2,500) = ??? X ???

Price/Rate Variance = Difference in Price/Rate X Actual Qty/Hrs
___???__=__??? X ???

Step 2: Wherever you have 2 out of the 3 numbers in an equation, calculate the missing value:

____________Qty/Hrs_______Price/Rate_______Total
+ Standard______17,000_____X____???_______=______???
– Actual ________17,500_____X___\$4.00_______=_____\$70,000
= Difference_______(500)_________???______________???

Usage/Efficiency Variance = Difference in Qty/Hrs X Standard Price/Rate
(\$2,500) = ??? X ???

Price/Rate Variance = Difference in Price/Rate X Actual Qty/Hrs
___???__=__??? X ???

Step 3: Check to see if any of the newly calculated values can be used to complete other formulas and/or identify other components in the equations:

a)__________Qty/Hrs_______Price/Rate_______Total
+ Standard______17,000_____X____???_______=______???
– Actual ________17,500_____X___\$4.00_______=_____\$70,000
= Difference_______(500)_________???______________???

Usage/Efficiency Variance = Difference in Qty/Hrs X Standard Price/Rate
(\$2,500) = (500) X ??? = \$5.00==>>Standard Price/Rate

Price/Rate Variance = Difference in Price/Rate X Actual Qty/Hrs
___???__=__??? X ???

b)__________Qty/Hrs_______Price/Rate_______Total
+ Standard______17,000_____X___\$5.00______=______\$85,000
– Actual ________17,500_____X___\$4.00_______=_____\$70,000
= Difference_______(500)________ \$1.00_____________\$15,000

Usage/Efficiency Variance = Difference in Qty/Hrs X Standard Price/Rate
(\$2,500) = (500) X ??? = \$5.00==>>Standard Price/Rate

Price/Rate Variance = Difference in Price/Rate X Actual Qty/Hrs
___???__=__\$1.00 * 17,500 = \$17,500 Favorable

Step 4 (optional): You can check the accuracy of your calculations by adding the Usage/Efficiency and Price/Rate variances to see if they equal the Total Variance (per the Standard/Actual/Difference matrix):

\$2,500 Unfavorable + \$17,500 Favorable = \$15,000 Favorable Total Variance==>>matches with separately calculated Total Variance

Though this format may seem like overkill for some of the easy variance questions, I find it EXTREMELY helpful for more difficult questions.

#1480228

pnc123
Participant

I got the exam in a week and i am using Becker. I still haven't touched B6. Since the time is short and i need to focus on reviewing now instead of going through new material, which parts of B6 should you think i better not skip given that B6 is less frequently tested on the exam. If you took BEC this year, did you get any questions from B6?

#1491820

michelleq6130
Participant

Hey! We are on the same boat! I have reread the notes a couple of times and have done countless MCQs.. I am just not sure when to start writing down those notes! For some reason I am so excited. 🙂

#1492011

ignaciopc
Participant

Hi,
I applied to do the BEC exam, this is my first application ever. I will do it at PA State,my status appears at the official website (NASBA) as ATTSENT. I don't know what it means. Can somebody be so kind to tell which status should appear when I have approved to attend the exam?. Thanks a lot and good luck everybody!

#1492012

Jsn3004
Participant

@wei ng It's unfortunate that many of the explanations get too complicated when there are better ways of explaining a solution.

#1492018

ignaciopc
Participant

1 Dollar = 0.95 euros, as you said, that means that the euro is stronger vs Dollar
0.95 Dollar= 1 euro, means that the is the opposite, Dollar is stronger.

I know that it is almost what you said, but just is case that this helps you.

Good luck everybody

#1492033

Krakebo007
Participant

You'll get ‘NTS issued ‘ and with an email included your NTS details

#1492239

S6
Participant

Re-taking BEC beginning of March and using Ninja MCQ.
Barely finishing capital budgeting and its kicking my beeeeeeehind.

Whyyyy

#1492240

ignaciopc
Participant

Thank you!

#1492246

mperez102204
Participant

Hey everyone, I am taking the exam on the 10th of march. I using the Nina Plus videos instead of reading the books that I have with Wiley. Do you think this is a bad choice? I just can not learn by readying. I learn better by watching and doing.

EH, i just want to pass an exam. I am so freaking far from it. I really do not want to do BEC with SIMS.

Also, you guys think about 3 weeks of final review is okay. I work full time so i can allocate about 2 hours during the week and 4-6 on each weekend night.

panic mode??? lol

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