BEC 2 Flashcards
(45 cards)
mnemonic: SEC consider what factor when selecting puc co for review
(C PERV) C=large market Cap; P=diff P/e ratio; E=affect Economy; R=issued mat Restatemnt; V=Volatility in stock
CRIME (COSO Framework)
Control Environment; mgmt Risk Assess; Info & comm sys; Monitoring; Exist control activities
mnemonic: Components of ERM
(CRRRIMES) C=Control/internal enviro; R=assess Risk; R=id Risk; R=Risk response; I=Info & comm sys; M=Monitoring; E=Effective control activities; S=Setting objectives (orcS)
Control/Internal Environment Factors
(EBOCA HR) E=Ethical val & integrity; B=Board oversight; O=Org structure; C=Commitment to Competence; A=Accountability; HR=hiring, risk mgmt/appetite
objectives of cost accounting
(PIE) P=Product costing; I=Income; E=Efficiency
Contribution margin =
revenue - variable cost
NI =
CM - FC
if invy increases, which method will have higher ni? Absorbtion or Variable?
ABSORBTION less fixed oh expensed under absorbtion
total fc / cm per unit =
breakeven in units
total fc / cm RATIO =
break eve in units
total sales - breakeven sales =
margin of safety
____ is used when analyzing bus decisions (focuses on rev & exp)
marginal analysis
incremental costs cost aka
prime costs
marginal cost =
vc + avoidable fc
slope = vc per unit =
change in Total COST (TC)/ change in VOLUME
Total Cost (TC)=
Tot FC + (VC per unit x Volume)
the ____ is a simple technique that is used to estimate the fixed & variable portions of costs
high-low method
in linear regression the ‘intercept’ =
total FC
_____ applies to a SINGLE-USE plan to a specific circumstance/time frame
TACTICAL PLAN (ie an annual budget)
master budget aka
STATIC budget (1 level of activity)
____ serves to communicate the criteria for performance
MASTER BUDGET
Master Budget contains (2)
- OPERATING budgets; 2. FINANCIAL budgets
OPERATING budgets contain what factors? 4
(PPSS)Personnel, Production, Sales, Selling/Admin
FINANCIAL budgets contain what factors? 2
Pro forma f/s; Cash budgets
