BEC 5

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

CRIME (COSO Framework)

Answer 2

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

Question 3

mnemonic: Components of ERM

Answer 3

(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 4

Control/Internal Environment Factors

Answer 4

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

Question 5

objectives of cost accounting

Answer 5

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

Question 6

OPERATING budgets contain what factors? 4

Answer 6

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

Question 7

3 major section of CASH BUDGET

Answer 7

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

Question 8

variable needed for flex budgets

Answer 8

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

Question 9

Order of budget preparation (5)

Answer 9

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

Question 10

3 purposes of standard costing systems

Answer 10

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

Question 11

4 measures of SBU to which mgmt is held accountable

Answer 11

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

Question 12

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

Answer 12

Accurate, Timely, Understandable, Specific

Question 13

Factors w/in the BALANCED SCORECARD

Answer 13

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

Question 14

3 examples of off b/s transactions

Answer 14

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

Question 15

IT Components

Answer 15

(P HaNDS) People; Hardware; Network; Data; Sortware

Question 16

Heirarchy of data

Answer 16

Bit; Byte; Entity; Attibute; Field; Record; File; Database

Question 17

7 info criteria

Answer 17

(ICE RACE) Integrity; Confidential; Efficiency; Reliability; Availability; Compliance; Effectiveness

Question 18

4 Domains of COBIT Framework

Answer 18

(PO AIDS ME) 1. PO=Plan & Organize; 2. AI=Acquire & Implement; 3. DS=Deliver & Support; ME=Monitor & Evaluate

Question 19

Supply Chain Mgmt (SCM) functions

Answer 19

(PMSD) Planning; Making; Sourcing; Delivery

Question 20

4 systems risk categories

Answer 20

(SOFI) Strategic; Operating; Financial; Information

Question 21

gdp EXPENDITURE approach

Answer 21

(GICE) Gov’t purchases; Investment; Consumption; net Exports-Imports

Question 22

gdp INCOME approach

Answer 22

(IPIRATED) Income of proprietors; Profits of corps; net Interest; Rental income; Adj for foreign income; Taxes; EE compensation; Depreciation

Question 23

Depreciation aka

Answer 23

Capital Consumption Allowance

Question 24

if gdp is down, employment will be ____

Answer 24

down

Question 25

as inflation increases, UNEMPLOYMENT ____

Answer 25

DECREASES

Question 26

gov't spend more, tax less in order to

Answer 26

stimulate DEMAND

Question 27

nominal interest rate =

Answer 27

real risk-free rate (aka tvm) + expected inflation rate

Question 28

NOMINAL INTEREST RATE & INFLATION are ____ related

Answer 28

DIRECTLY

Question 29

money supply & interest rates are ____ related

Answer 29

INVERSELY

Question 30

M2 are

Answer 30

cd less than $100k; mm; mutual funds; savings accts

Question 31

M3 are

Answer 31

cd greater than $100k

Question 32

LOWERING the discount rate ____ the money supply

Answer 32

INCREASES

Question 33

the fed res BUYING gov't bonds ____ the money supply

Answer 33

INCREASES

Question 34

FC / CM%

Answer 34

BE

Question 35

which costing method produces the LOWEST invy value

Answer 35

VARIABLE

Question 36

y is the

Answer 36

dependent variable

Question 37

x is the

Answer 37

independent variable

Question 38

Demand dictates

Answer 38

prices & vice versa

Question 39

factors that SHIFT DEMAND curve

Answer 39

(WRITEN) W=Wealth UP, d-UP; R=Related good (comp$ UP, d-DOWN; sub$ UP; d-UP); I=consumer Income UP, d-UP; T=changes in consumer Tastes; E=changes in consumer Expectations; N=chngs in Number of buyers (up, d-UP)

Question 40

a SHIFT in deman is not due to

Answer 40

a change in the PRICE of a good

Question 41

if the price of a substitue product INCREASES, demand for original product will

Answer 41

INCREASE b/c now seen as a bargain

Question 42

if the price of a complimentary product INCREASES, demand for original product will

Answer 42

DECREASE

Question 43

factors that SHIFT SUPPLY curves

Answer 43

(E COST) E=Expectations; C=chng in production Cost; O=chng in demand of Other goods; S=chng in Subsidies or taxes; T=chng in production Technology

Question 44

a ____ is a price that Is below equilibium price that causes shortages to develop

Answer 44

PRICE CEILING (causes prices to be artificially low, creating greater demand than supply available (ie rent control))

Question 45

a ____ is a price that Is above equilibium price that causes surpluses to develop

Answer 45

PRICE FLOOR (ie min wage)

Question 46

change Dependent variable / change in Independent variable =

Answer 46

SLOPE

Question 47

% chng Demand / % chng Price =

Answer 47

SLOPE

Question 48

marginal costs depends solely on

Answer 48

VC

Question 49

____ do not influence marginal costs

Answer 49

FC

Question 50

4 market stuctures

Answer 50

Monopoly; Monopolistic Competition; Oligopoly; Pure Competition

Question 51

Oligopoly is characterized by

Answer 51

few large sellers (entering market difficult to impossible)

Question 52

Factor (resources) of production include

Answer 52

Land, Labor, Capital

Question 53

a monopsony is

Answer 53

when there is only ONE employer in the market

Question 54

Porter's 5 Forces (factors the affect competitive environment)

Answer 54

1. barriers to market entry; 2. market competitiveness; 3. existence of substitute products; 4. bargaining power of customers; 5. bargaining power of suppliers

Question 55

supply chain (supplier of raw materials .to.

Answer 55

supplier of raw materials .to. Mfg .to. Wholesaler .to. Retailer

Question 56

supply chain operations reference (SCOR) model includes

Answer 56

Plan, Source, Make, Deliver