BEC CPA EXAM 2012

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ginabobeena
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167233
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BEC CPA EXAM 2012
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2012-09-08 23:34:22
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CPA BEC
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BEC CPA EXAM 2012
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  1. What are the four main objectives of ENTERPRISE RISK MANAGEMENT (ERM)?
    • 1. Strategic -- high level goals
    • 2. Operations -- achieved through effectiveness and efficiency
    • 3. Reporting -- reliable
    • 4. Compliance -- with laws and regulations
  2. "Tone at the top" is how the control enviornment is often PHRASED 
    • P Philosophy & operating style of mgmt
    • H Human Resources
    • Reporting (financial) competencies
    • Authority and responsibility
    • Structure (organizational)
    • E Ethical values
    • Directors
  3. What are the 5 key company objectives in the COSO framework for internal control? 
    Hint: CRIME
    • C  Control Enviornment: "tone at the top"
    • R  Risk Assessment: risk of misstatement/ fraud
    • I   Information and Communication Systems: timely & accurate
    • M Monitoring: effectiveness/report deficiencies
    • E  Existing Control Activities: policies and procedures to implement internal control
  4. What are the components of ERM?
    HINT: IS EAR AIM
    • I Internal Enviornment
    • S Setting objectives

    • E Event Identification
    • A Assessment of risk
    • R Risk reponse
    • A Activities (control)
    • I Information and communication
    • M Monitoring
  5. Most frequent cost accouting systems objectives:
    (Hint: PIE)
    • P Product costing
    • I Income determination
    • E Efficiency measurements
  6. PRIME COST equation
    Prime cost = direct labor + direct material
  7. CONVERSION COST equation
    Conversion cost = Direct labor + Manufacturing overhead
  8. Traditional Costing Application Of Overhead Two Steps
    Step 1: Calculateed overhead reate = budgeted overhead costs / Estimated cost driver

    Step 2: Applied overhead = actual cost driver x overhead rate (from step 1)
  9. FIFO equivalent units
    • 1.) Work in process (% complete) +
    • 2.) [Units completed during period -amount from beginning inventory] +
    • 3.) Ending WIP (% complete)
  10. Equivalent units under weighted average
    • 1) Completed during period
    • 2) Ending WIP (% complete)
  11. Activity-based costing (ABC) is also referred to as what?
    "Transaction Based Costing"
  12. CONTRIBUTION APPROACH
    to Income Statement Equation
    • Revenue
    • <Less: Variable Costs> (DM, DL, var mfg O/H, var. SG&A)
    • Contribution Margin
    • <Less: Fixed Costs>
    • Net Income
  13. CONTRIBUTION MARGIN RATIO
    Contribution margin/Revenue = Contribution margin ratio
  14. ABSORPTION APPROACH
    to the Income Statement Equation
    • Revenue
    • Less: COGS (DM +DL + var. mfg O/H + fixed mfg. O/H)
    • Gross Margin
    • Less: Operating expenses (Fixed + var SG&A, ie "period costs")
    • Net Income
  15. CONTRIBUTION MARGIN PER UNIT
    Selling price per unit - variable price per unit = contribution margin
  16. TOTAL BREAK EVEN POINT IN UNITS
    (formula)
    Total fixed costs / contrubution margin per unit
  17. ODER IN WHICH THE FOUR TYPES OF BUDGETS MUST BE PREPARED
    • 1. Sales
    • 2. Production
    • 3. Direct materials purchases
    • 4. Cash Disbursements

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