BEC 2 HW

Question 1

mnemonic: SEC consider what factor when selecting puc co for review

Answer 1

(C PERV) C=large market Cap; P=diff P/e ratio; E=affect Economy; R=issued mat Restatemnt; V=Volatility in stock

Question 2

Information Quality

Answer 2

(FAIR) F=Fair; A=Accurate,Accessible,Appropriate, C=Current; T=Timely

Question 3

CRIME (COSO Framework)

Answer 3

Control Environment; mgmt Risk Assess; Info & comm sys; Monitoring; Exist control activities

Question 4

mnemonic: Components of ERM

Answer 4

(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)

Question 5

Control/Internal Environment Factors

Answer 5

(EBOCA HR) E=Ethical val & integrity; B=Board oversight; O=Org structure; C=Commitment to Competence; A=Accountability; HR=hiring, risk mgmt/appetite

Question 6

objectives of cost accounting

Answer 6

(PIE) P=Product costing; I=Income; E=Efficiency

Question 7

OPERATING budgets contain what factors? 4

Answer 7

(PPSS)Personnel, Production, Sales, Selling/Admin

Question 8

3 major section of CASH BUDGET

Answer 8

1. Cash Available; 2. Cash Disbursement; 3. Financing=line of credit

Question 9

variable needed for flex budgets

Answer 9

1. rev per unit; 2. vc per unit; 3. fc per unit

Question 10

Order of budget preparation (5)

Answer 10

(Some People Make Cash Payments) 1. Sales; 2. Production; 3. Materials/Labo/OH purchased; 4. Cash; 5. Pro Forma F/s

Question 11

3 purposes of standard costing systems

Answer 11

1. cost control; 2. variance analysis; 3. learn from & improve processes

Question 12

4 measures of SBU to which mgmt is held accountable

Answer 12

(CRPI=mgmt is creepy) C=Cost; R=Revenue; P=Profit; I=Investment

Question 13

FEEDBACK w/in financial scorecards must be (AT US)

Answer 13

Accurate, Timely, Understandable, Specific

Question 14

Factors w/in the BALANCED SCORECARD

Answer 14

(FICA) F=Financial; I=Internal bus processes; C=Customer satisfaction; A=Advancement of innovation & hr develpmnt

Question 15

3 examples of off b/s transactions

Answer 15

1. op lease; 2. lawsuits; 3. related party trans

Question 16

the difference b/n VARIABLE costing & FULL ABSORBTION costing lies in the treatment of ____

Answer 16

FIXED MANU COSTS

Question 17

in FULL ABSORBTION COSTING, fixed manu are treated as ____

Answer 17

PRODUCT costs

Question 18

in VARIABLE COSTING, fixed manu are treated as ____

Answer 18

PERIOD costs

Question 19

in FULL ABSORBTION COSTING, fixed Manu OH =

Answer 19

full MOH/units produced=n; n x units sold = full absorbtion manu OH

Question 20

which will give you less Manu OH, thus higher NI? (full or absorbtion)

Answer 20

FULL ABSORBTION

Question 21

what ‘costs’ should be considered when considering discountinuing a product line?

Answer 21

RELEVANT COST = those costs that will change under different alternatives

Question 22

breakeven formula

Answer 22

FC + VC(n) = SP(n)

Question 23

Contribution Margin =

Answer 23

CM = Sales - VC

Question 24

FC / CM% =

Answer 24

Breakeven

Question 25

CM%

Answer 25

CM/Sales

Question 26

Margin of Safety =

Answer 26

Actual Sales - BE Sales

Question 27

ROE =

Answer 27

NI / Shareholder's Equty

Question 28

multiple regression differs from simple regression in that it

Answer 28

has more INDEPENDENT variables

Question 29

define: relevant RANGE

Answer 29

the range over which cost relationships are valid

Question 30

____costing encourages LARGER inventories

Answer 30

ABSORBTION

Question 31

SPE

Answer 31

Special Purpose Entity

Question 32

External Benchmarks aka

Answer 32

PRODUCTIVITY MEASURES

Question 33

OVERAPPLIED = (dr?cr?)

Answer 33

CREDIT

Question 34

is debr part of FC when computing BE?

Answer 34

YES so is variable selling costs

Question 35

which forecasting method relies MOSTLY on judgement?

Answer 35

DELPHI

Question 36

under the ____ forecasting method, multiple geo dispersed teams work together (highly judgemental input used)

Answer 36

DELPHI

Question 37

the best TRANSFER (interco) pricing model is based on _____ price

Answer 37

MARKET price

Question 38

which costing method may be used for external reporting? (variable or absorbtion)

Answer 38

ABSORBTION is appropriate for external reporting

Question 39

a ____ is a series of budgets based on different activity levels within the relevant range

Answer 39

FLEXIBLE BUDGET

Question 40

Flex Budgets are appropriate for

Answer 40

anything with VARIABLE costs

Question 41

the ____ is a performance measurement tool used to evaluate multiple DIMENSIONS (aka "critical success factors") of business outcomes

Answer 41

BALANCED SCORECARD

Question 42

Critical Success Factors are classified as 4 (hint Financial & non financial)

Answer 42

Human resource(aka Learning & Growth & Innovation), Business process, Customer satisfaction, Financial performance

Question 43

a ____ is responsible for revenue and costs

Answer 43

PROFIT center

Question 44

Strategic Business Units are classified into 4 types

Answer 44

Cost, Revenue, Profit, Investment

Question 45

Strategic Business Units are established in a ____ environment

Answer 45

DECENTRALIZED

Question 46

COGM =

Answer 46

DM+DL+OH app + Bwip - Ewip

Question 47

COGS =

Answer 47

COGM + Bfg - Efg

Question 48

Pro Forma budget preparation order 3

Answer 48

1. b/s 2. i/s 3. scf

Question 49

revenue variance aka

Answer 49

sales price variance (is due to a change in unit SELLING PRICE)

Question 50

standard costing systems are used in conjunction with ____

Answer 50

FLEXIBLE BUDGET

Question 51

performance mgmt measure/tracking that integrates fin & nonfin performance measures

Answer 51

BALANCED SCORECARD

Question 52

Sensitivity analysis uses

Answer 52

trial and error testing