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Flashcards in Nate BEC Deck (182)
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91

material usage variance?

This variance is the difference between the actual quantity of material used, and the standard quantity allowed for the output achieved, times the standard price of material.

92

Diff between spending variance for fixed overhead and variable overhead?

The spending variance for variable overhead is the difference between the actual overhead and the budgeted overhead based on actual direct labor hours. The spending variance for fixed overhead is the difference between the actual overhead and the master budget for fixed overhead. Neither variance is affected by the denominator used for allocating fixed overhead.

93

what is incremental or differential cost?

the total difference in cost of two alternatives.

94

Residual income formula?

Residual income = operating income - required rate of return (invested capital)

95

using PERT or CPM, activity slack is?

max amount of time an activity can be delayed without delaying the entire project

96

what are the 2 distinct functions of the information systems department?

systems development and data processing

97

liason between end-users and the processing center?

the control group.

98

what are the 3 main types of system documentation?

data flow diagramssystem flowchartsentity relationship diagrams

99

What AICPA framework relates to "reliable systems"?

AICPA's Trust Services provides assurance on systems.

100

what 3 IT functions need to be separated?

programming, operations, and the library

101

daily operations of the website?

Web coordinator

102

control activities defined?

Control activities include all of the policies and procedures used within a sytem to help ensure that all management directives are performed as anticipated. Each system is supposed to perform designated tasks. Control activities are installed to ensure those tasks get accomplished efficiently and effectively.

103

5 examples of information goals?

(1) input validity - where input data be approved and reflect accurate economic events (2) input completeness - all valid events are captured (3) input accuracy - all events are captured correctly (4) update completeness - all events are reflected in respective master files (5) update accuracy - all events are reflected correctly within master file.

104

controlling computer operations is controlled by:

Segregation controls, backup and recovery, contingency processing, file protection rings and internal and external labels represent methods to control computer operations. Segregation controls represent controlling access to programs and data.

105

There are five risks associated with e-commerce, according to the Trust Services framework established by the AICPA. These risks are:

1) security, 2) availability, 3) processing integrity, 4) online privacy, and 5) confidentiality.

106

4 categories of IT resources under COBIT:

applications, which include systems and manual procedures to process information; the information itself; infrastructure, which includes hardware, equipment, and operating systems needed to process information; and people.

107

4 components of the COBIT framework's IT process model:

1) plan and organize, 2) acquire and implement, 3) deliver and support, and 4) monitor and evaluate. Abbreviated, these components are referred to as: Plan, Build, Run, and Monitor.

108

Who established COBIT?

The Information Systems Audit and Control Association (ISACA)

109

definition of net present value?

present value of cash inflows minus the net investment

110

definition of internal rate of return?

the specific discount rate that makes the present value of the inflows equal to the net investment and forces the NPV to be equal to zero

111

market value added?

market value of the firm minus the book value of the capital investment in the firm

112

economic value added?

net operating profit after taxes minus the firm's cost of capital in dollar terms

113

ROA (return on assets):

net income divided by total assets

114

ROE(return on equity):

net income divided by total equity

115

ROIC (return on invested capital)

net income plus interest divided by average total invested capital. invested capital is just interest bearing debt plus owners equity

116

what are the 4 elements of a balanced scorecard?

financial, customer, internal processes, and learning & growth

117

after a performance measure has been accepted, what is the next step?

the current level of performance should be determined (baseline performance), a designated performance rate or a designated improvement rate should be set (targets), and actions needed to achieve those targets should be designated (strategic initiatives)

118

free cash flow?

net operating profit after taxes (NOPAT), add in depreciation expense, then subtract money set aside for capital expenditures and any need for increasing working capital

119

receivables turnover?

net credit sales / avg acc receivable

120

number of days sales in inventory?

COGS divided by 365. Then divide avg inventory by the first number.