BEC tricks I had played

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    Topic
  • #1504696
    Wannafree
    Participant

    I deliberately didn’t solve one question of variance and marginal cost accounting in first teslets. Next testlet was full of cost accounting which is my strong area and I had field day.In third testlet there were hardly 2 questions on cost accounting.I didn’t solve budget and PV calculation question in 2nd testlet and third teslet was full of budgets and PV which were basically algebra.I am not sure if my tricks worked or it was coincidence. I believe based on previous 2 attempts they try to punch in your weak areas.
    I passed with 80.

    WannaB
Viewing 15 replies - 1 through 15 (of 41 total)
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  • #1504771
    tud20551
    Participant

    THis cannot be accurate,I'll miss the econ questions on my first testlet then

    ALso how the hell is cost accounting your strong area. Its the hardest (any tips for getting this area strong)

    BEC - Passed

    FAR - Ninja in Training

    AUD - Ninja in Training

    REG - Ninja in Training

    #1504776
    alexio senchez
    Participant

    This is very interesting. I think most people who've taken the test will agree that, by the 2nd testlet, the computer knows your weak areas and will pound you with those topics. I've always wondered about the approach OP describes but I've been too chicken to get questions wrong on purpose.

    It seems that the CPA exam punishes you for studying too much by giving you harder questions (albeit they're worth more points) and it also nefariously looks for your weak areas in building the next testlet.

    #1504788
    Anthony
    Participant

    @alexio senchez Considering the fact the exam is adaptive, of course the exam will try to stab you in the back with topics were you are weak at. If they kept handing you questions where you are acing it, then the pass rate would have sky rocketed.

    AUD - 82
    BEC - 80
    FAR - 81
    REG - 82
    FAR - 74 first attempt
    #1504794
    Wannafree
    Participant

    @alexio I was fine both ways ,had they not given Cost accounting and Budget I would have saved time for memos which I had missed on previous attempts.Yes missed completely ( 0 out of 3 ) so I thought if they give Cost accounting and Budget too much I would ace the MCQ otherwise due to nature of short questions I would save time for memos.I took the risk and it was very difficult move as I knew the answers for questions I was skipping.Who knows I would have got 3 more marks had I answered those 2-3 questions.When I saw Cost accounting all over the 2nd testlet I smelled the pass.Second time I left the Budget question of testlet ,that was no brainer but took risk again and whoaa third tetlet full of Budget questions and PV.I understood I am passing this time even if I miss memo but I had around 25 minutes left for memos and fortunately finished the three memos( my nightmare ).
    On 10th I am appearing for FAR and will skill Govt and NFP in first testlet as those are my strong areas.I will post if that works out.I will Use time saved in first testlet for Consolidation and Pension.This illusion that I am understanding exam pattern gives me good confidence and hope too.LOL

    WannaB
    #1504798
    Wannafree
    Participant

    @Anthony , in third testlet I didn't see any Costing questions but saw lot of Budget and PV question ,yes it took time as questions were long.

    WannaB
    #1504803
    alexio senchez
    Participant

    @Nath – did you leave those questions with no answer at all or did you purposefully pick the wrong answer?

    #1504810
    Wannafree
    Participant

    @Tud , are u kidding ? Do you really need tips on Cost accounting ? I can write whole page on this , took three attempt for BEC ( due to lack of time for memos ) and felt that is the only area where u can be 100% sure.Let me know if are serious and can write a post on costing.

    WannaB
    #1504816
    Wannafree
    Participant

    @alexio I left that question blank as it was difficult to chose wrong when I knew it was wrong.

    WannaB
    #1504845
    famh110
    Participant

    @Nath..you are quiet a risk taker! few of us can go with this approach but am glad it worked for you! it does make sense and pls share your approach for cost accounting. thanks

    AUD - 75
    BEC - 77
    FAR - NINJA in Training
    REG - NINJA in Training
    "The best preparation for tomorrow is doing your best today". (H Jackson Brown, Jr.)
    #1504918
    Anonymous
    Inactive

    My BEC exam is tomorrow
    But I will never do something insane like this

    #1504923
    EZ_Sims_4_me_Pls
    Participant

    this has to be one of the dumbest things ive seen suggested. I would strongly recommend against this practice, OP.

    your scores indicate that you don't have a tremendous amount of room for error…. and would likely be harmed if trying this on a beast like FAR.

    if I had to guess, you did well on the first testlet, which is why you saw harder concepts on the following testlets (let's be real, a question that you have to compute is easier than a one-liner IT or COSO question).

    I experienced the exact opposite on my REG exam. Crushed the first testlet (fairly certain I actually got every question correct), and saw more of the same on my subsequent testlets… my scorecard reflects that I was “stronger” on every aspect of the MCQ, except for one area where I was “comparable”.

    I wouldn't read anything more into what you experienced… the idea that you ‘cracked' the CPA exam is laughable IMO.

    AUD - 80
    BEC - 84
    FAR - 77
    REG - 79
    one step closer
    #1504926
    A
    Participant

    I think I'll spend these last few days studying the actual material than wasting time and energy trying to extrapolate testing algorithms. 😉

    B A R F

    B - 77 (2.27.16)
    A - 81 (4.18.16)
    R -
    F -

    Roger Review + Ninja MCQs

    #1504929
    Wannafree
    Participant

    Here is the basic of costing for CPA exam.
    1.Marginal costing:1.Remember variable cost and fixed cost.
    You can't sell below variable cost ( no way ).
    So deduct the variable cost from sales this is your “Contribution” and it has fixed cost plus profit.
    At some point ( number of units ) contribution will recover the Fixed cost.This point is Break even point.Now say fixed cost is $100 ,so you should calculate number of units to get this fixed cost.( Fixed cost/Contribution per unit ,please note contribution per unit not sales per unit ).Say Contribution/unit is $10 then 10 units is Break even point or in value ( Sales per unit multiplied by BE units ,please notes sales/per unit )
    To calculate Break even you divide by contribution/Unit but to calculate the $value
    you multiply by Sales/unit.
    Main point , Fixed cost/Contribution per unit
    Now this is crux , same thing can be calculated by formulas.
    two points they test on marginal costing: 1.Calculate Break even point (in units or value ) or in some case to decide make or buy ,or sell at less then sales value(per unit).
    Rules:Calculate contribution (sales – variable cost )/per unit .compare who has most contribution ( per unit or total ) and check which one recovers Fixed cost most.
    Key is never sale below variable cost and recover the fixed cost (total ) as soon as possible.
    Fixed cost total remain same( for some level ) and per unit fixed cost decreases with increased production.

    2.Variance:Take three types first ( material , labor and sales)
    There is standard cost and then actual cost.
    say you are selling burritos ,you will not wait for year end figure to charge the cost to customer.You would calculate estimated cost before you start selling.This is standard cost.
    Actual cost is you will actually pay for raw materials labours etc.
    Standard cost – actual cost = Total variance.You will ask good or bad .If you thought cost would be 100 and you incurred actually 80 then it's good also called as favorable variance , if bad (you incurred more then expected ) then it's unfavorable variance.
    Now you may ask why variance happened ? either it is due to quantities or rate ,right ?
    If it's quantities then volume variance if it is due to rate ( means you guessed $5 per lb of meat but ended up paying $6 dollar per lb ) then Rate variance.
    If you have both variance , you purchased too much meat and also at higher rate then you would get Volume and rate variance both.
    Total variance = Rate variance + Volume variance.
    Again ( Tom Gearty ) , Rate variance = ( standard rate – actual rate ) X (Atual quantities )
    Volume Variance ( standard quantity you planned for – actual quantity ,actually u bought )X Standard Rate
    Please note multiplication rate and quantities whether it should be std or actual )
    Please remember you get paid for actual hours worked so actual .So here you are multiplying ACTUAL hours or quantities etc ) another will be STANDARD
    Variance calculation for Material ,Labor and Sales will be same ) just language different like actual hours for wages , actual quantities for sales and Material.
    Budget and Overhead variance little different formula but fundamentally same theory.
    For labor it Efficiency variance and for sales and material it's volume variance.
    Rate variance is same in all three (sales ,material and wages)
    3.Budget in costing : You used algebra ,primary school
    They will say budget for the dept was last $100 and this year they expect 10% rise in cost etc just multiply or divide as they are saying in columnar form and you can't be wrong but it will take more time then economics or IT question.
    4.One more area they mask slope calculation.Simple just again know the variable and fixed cost and use formula(algebra )
    Total costs = fixed costs + variable costs or y = mx + b, where m = slope, x = variable value, and b = y intercept(also called fixed cost).

    Let me know if any specific topic on Cost Accounting you need clarification or tricks to remember.I love Cost Accounting and Tax.

    List of formulas for BEC:
    1. APR (annual percentage return) = Effective Interest Rate * # of periods in year

    2.  Asset turnover = Sales / Total Assets

    3.  Breakeven Point in terms of units = fixed costs / Contribution Margin

    4.  Breakeven Point in terms of dollars = fixed costs / contribution margin ratio

    5.  Cash conversion cycle = inventory conversion period + receivables collection period – payables deferrable period

    6.  Current ratio = current assets / current liabilities

    7.  Contribution Margin = revenue – variable costs
    a. or = sales – variable costs

    8.  Cost of Goods Sold = Beg. Inventory + Inv. Purchases – End. Inventory

    9.  Dividend Payout Ratio = cash dividend per share / Earnings per share

    10.  Economic Value Added = net operating profit after taxes (NOPAT) – cost of financing

    11.  Effective Interest Rate = (principle * rate * time) / principle

    12.  Gross Margin = revenue – cost of goods sold (or gross profit)

    13.  Inventory conversion period = Average Inventory / Cost of sales per day
    14. Average inventory = (Beginning inventory + Ending inventory) / 2
    15. Make sure to use 365 days per year unless stated otherwise

    16.  Inventory Turnover = cost of goods sold / average inventory

    17.  Marginal propensity to consume = change in spending / change in disposable income

    18.  Marginal propensity to save = change in savings / change in income

    19.  Number of Days Sales in Inventory = # of days in year (usually 365 or 360) / Inventory Turnover

    • Quick Ratio = Quick assets (cash, marketable securities, and A/R) / current liabilities

    • Residual Income (RI) = operating profit – interest on investment (or required rate of return)

    • Times interest Earned Ratio = earnings before interest and taxes / interest expense

    • Total costs = fixed costs + variable costs or y = mx + b, where m = slope, x = variable value, and b = y intercept

    • Variances – plug in the corresponding units:

    • Labor Efficiency – SR * (SH – AH). Actual Quantity Purchased/Consumed *(standard price per unit – actual price per unit)

    • Labor Rate – AH * (SR – AR). Standard price per unit * (standard quantity used – actual quantity used)

    • Material Price – AQ * (SP – AP). Actual Quantity Purchased/Consumed *(standard price per unit – actual price per unit)

    • Material Efficiency – SP * (SQ – AQ). Standard price per unit * (standard quantity used – actual quantity used)

    • Fixed overhead spending – (budgeted-standard fixed overhead to incur – actual fixed overhead incurred)

    • Fixed overhead volume – (budgeted-standard fixed overhead to incur – ((actual production * standard labor hours)*(budgeted-standard fixed overhead to incur/budgeted labor hours))

    • Weighted Average Cost of Capital = [(cost of capital A / Total Amount)(rate of cost)(1-Tax Rate)] + [(cost of capital B / Total cost amount)(rate of cost)]

    • Work in process = Direct Material used + Direct Labor + Manufacturing Overhead

    • Average accounts receivable = (Beg. A/R + End. A/R) / 2

    • Average accounts receivable collection period = sales on credit / average accounts receivable

    • Average total assets = (Beginning total assets + Ending total assets) / 2

    • Book value per share = common stock equity / common stock shares outstanding

    • Common stockholders’ equity = stockholders’ equity – preferred stock liquidation value

    • Contribution Margin Ratio = (sales – variable costs) / sales

    • Cost of financing= (Total assets – current liabilities) * Weighted average cost of capital

    • Cross-Elasticity = % change in demand for certain product A / % change in price of certain product B.

    • Debt to equity = Total debt / total equity

    • Debt to total assets = total liabilities / total assets

    • Discounted Payback Period = multiply by Present Value factor until initial invested amount reached. Disregard salvage value

    • Fixed asset turnover = sales / average net fixed assets

    • Gross Profit = revenue – cost of goods sold

    • Income Elasticity = % change in quantity demanded / % change in income

    • Internal Rate of Return = Initial Investment + Cash Flow in Period n/ (1 + Discount Rate) to the nth power (# of periods).

    • Marginal utility = change in total utility / change in quantity

    • Market/Book Ratio = common stock price per share (or market value)/ book value per share

    • Market Capitalization = Common stock price per share * common stock shares outstanding

    • Operating leverage= % change in operating income / % change in unit volume

    • Operating Profit Margin = Operating profit / net sales

    • Preferred Stock Valuation – dividend per share / required rate of return

    • Price/Earning (PE) Ratio = common stock price per share / Earning per share

    • Profitability Index = project net present value / cost of project

    • Receivables Collection Period = Average Accounts Receivable / Credit Sales per day

    • Receivable Turnover = Net credit sales / average accounts receivable

    • Reorder Point= delivery time of stock + safety stock or could be stated as = average daily demand * average lead time
    • Return on Assets (ROA) = net income / average total assets

    • Return on Equity (ROE) = net income / Average common stockholders’ equity

    • Return on Investment (ROI) = Net Income / Total Assets

    • Return on sales (ROS) = net income / Sales

    • Safety Stock= (Max. Daily demand * Max. Lead time) – reorder point

    • Total asset turnover = sales / average total assets

    WannaB
    #1504938
    Wannafree
    Participant

    @EZ_Sims_4_me_Pls as I said earlier not sure if it worked or coincidence.I agree with you it was insane but had failed twice and was desperate to pass and tried this.I agree with you that my score says it was not scope for more errors.I just wanted 75.Noway I can vouch it is proven but will take the risk on FAR for Govt in testlet one.Just 1 or 2 question but if there are 3-4 I would solve all.LOL

    WannaB
    #1504965
    famh110
    Participant

    @nath…thanks! i will definitely be reading through this.

    AUD - 75
    BEC - 77
    FAR - NINJA in Training
    REG - NINJA in Training
    "The best preparation for tomorrow is doing your best today". (H Jackson Brown, Jr.)
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