# BEC REVIEW 1

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1. Imputed costs are -------------------; they are not known with certainty and must be estimated. The stated interest paid on a bank loan is known and therefore need not be imputed. The other examples must be calculated from other figures and cannot be known with certainty. They are, therefore, imputed costs.
Imputed costs are implied costs; they are not known with certainty and must be estimated. The stated interest paid on a bank loan is known and therefore need not be imputed. The other examples must be calculated from other figures and cannot be known with certainty. They are, therefore, imputed costs.
2. Imputed costs are -----------------------------------------------------------------------------------------------------------------------
Imputed costs are implied costs; they are not known with certainty and must be estimated. The stated interest paid on a bank loan is known and therefore need not be imputed. The other examples must be calculated from other figures and cannot be known with certainty. They are, therefore, imputed costs.
3. In ---------------- operations, transactions are processed as they occur, without regard to any particular sequence.
In real-time operations, transactions are processed as they occur, without regard to any particular sequence.
4. In real-time operations, ------------------------------------------------------------------------------------------.
In real-time operations, transactions are processed as they occur, without regard to any particular sequence.
5. When evaluating projects, the discounted breakeven period is best described as:
the point where discounted cumulative cash inflows on a project equal discounted total cash outflows.
6. the discounted breakeven period is the ---------------------------------------------------------------------------------------
the discounted breakeven period is the time required to recover the cash invested in a project.
7. The following information data pertains to a manufacturing company:

Total sales \$80,000

Total variable costs 20,000

Total fixed costs 30,000

What is the breakeven level in sales dollars?
\$40,000

The contribution margin ratio is the contribution margin (sales of \$80,000 less variable costs of \$20,000, or \$60,000) divided by the sales revenue of \$80,000, or 0.75.

Breakeven revenue is found by dividing the fixed costs of \$30,000 by the contribution margin ratio of 0.75, for breakeven sales revenue of \$40,000.
8. Business valuators often have to make adjustments during the normalization process. There are four basic categories of normalization adjustments:

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Nonrecurring adjustments: the removal of unusual, unexpected, or items not likely to occur again from the financial statements.

Comparability adjustments: adjustments of the historical financial statements to match GAAP choices of potential guideline companies.

Discretionary adjustments: adjustments to the historical financial statement to include or to remove items not considered part of normal operations.
Business valuators often have to make adjustments during the normalization process. There are four basic categories of normalization adjustments:

Nonoperating adjustments: the removal of nonoperating items included in the historical financial statements that are not part of normal operations.

Nonrecurring adjustments: the removal of unusual, unexpected, or items not likely to occur again from the financial statements.

Comparability adjustments: adjustments of the historical financial statements to match GAAP choices of potential guideline companies.

Discretionary adjustments: adjustments to the historical financial statement to include or to remove items not considered part of normal operations.
9. Business valuators often have to make adjustments during the normalization process. There are four basic categories of normalization adjustments:

Nonoperating adjustments: the removal of nonoperating items included in the historical financial statements that are not part of normal operations.

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Comparability adjustments: adjustments of the historical financial statements to match GAAP choices of potential guideline companies.

Discretionary adjustments: adjustments to the historical financial statement to include or to remove items not considered part of normal operations.
Business valuators often have to make adjustments during the normalization process. There are four basic categories of normalization adjustments:

Nonoperating adjustments: the removal of nonoperating items included in the historical financial statements that are not part of normal operations.

Nonrecurring adjustments: the removal of unusual, unexpected, or items not likely to occur again from the financial statements.

Comparability adjustments: adjustments of the historical financial statements to match GAAP choices of potential guideline companies.

Discretionary adjustments: adjustments to the historical financial statement to include or to remove items not considered part of normal operations.
10. Business valuators often have to make adjustments during the normalization process. There are four basic categories of normalization adjustments:

Nonoperating adjustments: the removal of nonoperating items included in the historical financial statements that are not part of normal operations.

Nonrecurring adjustments: the removal of unusual, unexpected, or items not likely to occur again from the financial statements.

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Discretionary adjustments: adjustments to the historical financial statement to include or to remove items not considered part of normal operations.
Business valuators often have to make adjustments during the normalization process. There are four basic categories of normalization adjustments:

Nonoperating adjustments: the removal of nonoperating items included in the historical financial statements that are not part of normal operations.

Nonrecurring adjustments: the removal of unusual, unexpected, or items not likely to occur again from the financial statements.

Comparability adjustments: adjustments of the historical financial statements to match GAAP choices of potential guideline companies.

Discretionary adjustments: adjustments to the historical financial statement to include or to remove items not considered part of normal operations.
11. Business valuators often have to make adjustments during the normalization process. There are four basic categories of normalization adjustments:

Nonoperating adjustments: the removal of nonoperating items included in the historical financial statements that are not part of normal operations.

Nonrecurring adjustments: the removal of unusual, unexpected, or items not likely to occur again from the financial statements.

Comparability adjustments: adjustments of the historical financial statements to match GAAP choices of potential guideline companies.

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Business valuators often have to make adjustments during the normalization process. There are four basic categories of normalization adjustments:

Nonoperating adjustments: the removal of nonoperating items included in the historical financial statements that are not part of normal operations.

Nonrecurring adjustments: the removal of unusual, unexpected, or items not likely to occur again from the financial statements.

Comparability adjustments: adjustments of the historical financial statements to match GAAP choices of potential guideline companies.

Discretionary adjustments: adjustments to the historical financial statement to include or to remove items not considered part of normal operations.
12. What are Nonoperating Adjustments -
Nonoperating adjustments: the removal of nonoperating items included in the historical financial statements that are not part of normal operations.
13. What are Nonrecurring adjustments -
Nonrecurring adjustments: the removal of unusual, unexpected, or items not likely to occur again from the financial statements.
14. What are Comparability adjustments -
Comparability adjustments: adjustments of the historical financial statements to match GAAP choices of potential guideline companies.
15. What are Discretionary adjustments -
Discretionary adjustments: adjustments to the historical financial statement to include or to remove items not considered part of normal operations.
16. What is real time processing?
if the data is processed fast enough to get the response back in time to influence the process.
17. What is an integrated System?
all files are affected by a transaction are updated in one transaction processing run.
18. What is the following?

if the data is processed fast enough to get the response back in time to influence the process.
Real time processing
19. What is the following?

all files are affected by a transaction are updated in one transaction processing run.
An integrated system
20. what are the 4 types of processing Methodology?
• 1. Batch Processing
• 2. Online Processing
• 3. Real-Time Processing
• 4. Integrated System
 Author: Joens1313 ID: 310183 Card Set: BEC REVIEW 1 Updated: 2015-10-24 16:19:01 Tags: BEC REVIEW Folders: Description: BEC REVIEW 1 Show Answers: