BEC Study Group Q1 2017
January 7, 2017 at 7:42 pm #1426407
@ReineMossi, I personally would use average investment for the ROI formula.January 7, 2017 at 7:45 pm #1426410
For FAR and AUD, I had a pretty good plan and stuck to it. I watched the videos, wrote notes, did MCQs and rewrote notes. I am doing the same thing for BEC, except I haven't rewritten the notes yet. I feel like the material is all over the place and I am missing so many questions that my notes are growing to the point I'm unmotivated to rewrite them.
So far, I've seen all of the MCQs except for about 150 of the Financial Management ones. I'm working all IT questions today.. then will do like 40 MCQs covering all sections (just to stay fresh). I'll probably rewrite the notes tomorrow morning, then focus on the Financial Management questions. Beginning Monday, I'll do sets of 20 MCQs encompassing all sections, with every other MCQ set focusing on trouble questions. I test Friday, so I'm hoping this shows improvement since I am not confident with BEC like I was with FAR and AUD. Weird given this is supposed to be the “easiest”…January 7, 2017 at 7:50 pm #1426418
I also had the same issue with the confusing Roger section on OH Variances. The different way the questions word things can throw you off to. Anyways, from what i have seen, when questions say spending variance it means the same as rate variance.
Variable OH Rate Variance: AH x (SR – AR)
Variable OH Efficiency Variance: SR x (SH – AH)
When determining SH, I always think to myself what that hours Should Have been (SH = Should Have).
For the question 25(10 – 8) = 50 favorable because less hours were used.January 7, 2017 at 8:25 pm #1426442
@nathalia Thanks so much for the Formulas link!!!January 7, 2017 at 9:00 pm #1426479
@CPYay I agree with you on the material feeling like it's all over the place. That is definitely what makes BEC challenging. I find myself second guessing what I should be studying next.
I feel like you are on the right track. My biggest lesson learned from my first battle with BEC was that I spent too much time studying difficult questions. I had notes floating around everywhere and should have stayed focused on the core concepts.
Last time I only made it to 72% completion on the Ninja MCQs. As you can see it cost me my last section. I know for a fact that if I would have made it to the review phase and rewrote the Ninja notes, I would have passed.
All that being said, DON'T BE DISCOURAGED! You can see the finish line!
One of my FAVORITE videos for MOTIVATION.
Best of luck to everyone!January 7, 2017 at 9:37 pm #1426493
@ CPA or DieTrying – That is the main reason I hate Becker, you really think you know something doing the MCQ's but really its just because someone just told you the answer. Its painful process but you got to nail the concepts. I look at material in waves. Wave 1 review video/text, wave 2 do MCQ's, wave 3 do some research on the topic. I think the thing that helps is I put SPACE between the waves that lets it sink into my long term memory. It takes me 2 waves to master the easier topics and about 5 waves to master the harder topics.
@Teal – Welcome!!! nice to see a familiar name.January 7, 2017 at 10:08 pm #1426518
Can someone explain the treatment of variable SG&A for Absorption Approach versus Contribution Approach and how they differ please?
I'm using Becker and on page B2-5 it seems like the text contradicts itself. First it says, variable SG&A is included in the total variable costs for the CM calculation, the pass key states that variable and fixed SG&A are period costs (not product costs), then the income statement examples show variable SG&A included in the CM calculation.
Unless this whole page is telling me that variable SG&A costs are a period cost that are included in the calculation of the contribution margin, which seems strange.January 7, 2017 at 10:25 pm #1426526
I think you're confusing what the contribution margin is.
CM = Rev – ALL VARIABLE COSTS
B2-5 in Becker just tells you the differences between period and product costs under each approach. If you look at B2-4, it's not saying that CM = Rev-product costs, it only says CM= Rev – variable costs.
The point of them telling you the differences between period and product costs under each approach is so that you know that product costs under absorption are larger since it includes Fixed MOH.January 7, 2017 at 11:14 pm #1426554
thanks jjjgolf500!January 7, 2017 at 11:19 pm #1426556
Gotcha! Thanks for clarifying.January 8, 2017 at 10:45 am #1426704
Good luck everyone with your study plans today! I'm using a hybrid wiley/ninja method of redoing the excel class and then cementing with ninja mcqs-finishing planning and measurement today so I should reach final review by this afternoon! I threw taking notes and lectures out the window and am focusing on reading and concepts-it worked for FAR so here goes nothing.January 8, 2017 at 11:21 am #1426733
Reading Chapter 2 Econ of ninja textbook today. 100 pages to go. I listened to the Ninja Audio twice already. Going back to text, just going to read text take mental note of the major concepts then go back and take notes. I think trying to grasp everything by reading it once is a little unrealistic.January 8, 2017 at 12:24 pm #1426776
@LIZZ I definitely agree. I've looked at the Becker text about 3 times now and I think I finally have a good grasp of the major items. The MCQs then help me with the minor details.
I know it works for some people to just do MCQs over and over again, but to me that's just memorizing the answers. Doesn't really help with BEC when there's so much algebra involved. Like a question may ask for COGS but you may have to go through RM, WIP, and FG in order to get the number. Or with Residual income formula, knowing that it equals Net Income-required return just isn't enough. You also need to know what required return is, and that equity is also equal to A-L…January 8, 2017 at 12:53 pm #1426803
@Nathalia – I agree w u 100%. Ive never been the person that can do 100's of MCQ's. I start to memorize and not learn the concept. This way sucks but honestly there is no Easy way around the CPA.January 8, 2017 at 2:02 pm #1426883
Hush…… 130 MCQ + writing everyday.
Hopefully this will at least give me 75.
Forgot variances watched roger video again today. Too much details and computations, who says BEC is not that difficult.January 8, 2017 at 2:39 pm #1426908
Anyone having success with the Financial Management MCQs?
They are destroying me. There are so many variations to the calculations and every problem has at least one or two exceptions to the formula, so I get it wrong anyway. If it wasn't for this section, I'd be somewhat confident.January 8, 2017 at 2:58 pm #1426916
I know this is probably a dumb and basic question, but I'm having a hard time differentiating between a director and a manager or executive.
I guess directors direct by setting goals and strategies, managers manage employees so that those goals and met, and then the executives also manage?January 8, 2017 at 3:16 pm #1426928
My understanding is:
Managers – Manage employees and/or resources
Directors – Manage Managers and make higher-level decisions
Executives – Manage Directors and make strategical and high-level decisions for the entire companyJanuary 8, 2017 at 3:35 pm #1426946
@CPYay I felt the same exact way yesterday with Financial Management. Today I've been working on Operations. That got my confidence back up.
My plan for Financial Management is to
1. read through the chapter again
2. rewrite basic concepts
3. work through some of the Roger's mcqs (easier than Ninja) to reinforce basics
4. jump back into Ninja MCQsJanuary 8, 2017 at 6:40 pm #1427075
So I just retook FAR today (praying that I passed but some of the sims were confusing) and I need to retake BEC asap before it changes (scored a 72 on 1st try in extended testing week of Q4), my job is ramping up for busy season starting this week and i'm looking at seat availability trying to decide if it's worth trying to cram and retake next weekend or wait until the 29th, I appreciate any suggestions!
Used Becker+NINJA notes for first try at BEC and now bought the NINJA audio to listen on my hour commute, Financial Management chapter and all those PV/NPV/IRR formulas were definitely my weak spot so any suggestions for ways to improve on that would be helpful as well. Thanks!
Good luck everyone!January 8, 2017 at 7:15 pm #1427099
in addition to the post above regarding Board of Directors and Management, Board of Directors are not an agent of company, therefore can't enter into contract on their own, they have Fiduciary duty
while Management are agents of the corporationJanuary 8, 2017 at 7:17 pm #1427100January 8, 2017 at 8:14 pm #1427130January 8, 2017 at 8:40 pm #1427145January 9, 2017 at 7:43 am #1427468
Platinum Co. has a receivable due in 30 days for 30,000 euros. The treasurer is concerned that the value of the euro relative to the dollar will drop before the payment is received. What should Platinum do to reduce this risk?
a. Enter into an interest rate swap contract for 30 days.
b. Platinum cannot effectively reduce this risk.
c. Buy 30,000 euros now.
d. Enter into a forward contract to sell 30,000 euros in 30 days.
Correct answer is d.
I'm not sure what “the value of the euro relative to the dollar will drop” means. 1 dollar will in the future buy less euros, or will 1 dollar in the future buy more euros? 1 euro will be worth less dollars or 1 euro will be worth more dollars?
I guess if something is less valuable, it will cost less? so in the future those 30,000 euros will be worth for example, $10,000 instead of $15,000 like they do now?
So if we enter into a forward contract we are locking in that we will get $15,000 in the future for those 30,000 euros, instead of just straight up getting $10,000 in the future?
Is there another way of thinking about this? The phrasing of current exchange questions has always gotten to me… Like this literally took me about 15-20 minutes and some investopedia videos before I think I understood it.January 9, 2017 at 9:46 am #1427516
@Nathalia the wording the euro weakens in relationship to dollar means you will be able to buy more euros with one dollar i.e. if the current ex rate is 0.78 euro to $1, the treasurer is worried it might become 0.50 euro to $1 which means when they receive the receivable it won't be worth as mush dollars in 30 days. In order to reduce this risk you would enter into a forward contract to guarantee or “lock in” a certain rate to hedge against the risk of the euro decreasing in value. Putting hypothetical numbers in to make more sense:
30,000 euros to be received in 30 days. Currently euro = 0.78 to $1, treasurer is worried it might be 0.5 euro to $1 dollar in 30 days
To hedge against this he enters into contract to sell 30,000 euros at 0.67 in 30 days, therefore the risk of the euro weakening is reduced because he has the ability to sell them for more than the weakened amount.
I hope that helps and makes sense!January 9, 2017 at 12:00 pm #1427621
Yes. When I start studying for an exam, I watch all the Roger videos and take notes. After I finish the videos, I go straight into Ninja MCQs and write notes for any questions I get wrong or get right but don't completely understand. I usually don't do any Roger MCQs at all, but I did some this weekend to reinforce some basic concepts and boost my confidence hahaJanuary 9, 2017 at 1:51 pm #1427889
Has anyone taken BEC in Jan and would like to share their experience?January 9, 2017 at 2:28 pm #1427928January 9, 2017 at 3:15 pm #1427960
Depends on what you mean.
Overall… my average is 71% while my trending is 82%.
My average is low because in the beginning of my studies, I jump straight into MCQs after I watch the videos, so I miss a lot of questions.
My trending is skewed a bit because I memorized some of the answers (try not to, but it's unavoidable). So I imagine my true score is somewhere around 75%.
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