BEC 1 HW Flashcards
mnemonic: SEC consider what factor when selecting puc co for review
(C PERV) C=large market Cap; P=diff P/e ratio; E=affect Economy; R=issued mat Restatemnt; V=Volatility in stock
CRIME (COSO Framework)
Control Environment; mgmt Risk Assess; Info & comm sys; Monitoring; Exist control activities
mnemonic: Components of ERM
(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)
Control/Internal Environment Factors
(EBOCA HR) E=Ethical val & integrity; B=Board oversight; O=Org structure; C=Commitment to Competence; A=Accountability; HR=hiring, risk mgmt/appetite
objectives of cost accounting
(PIE) P=Product costing; I=Income; E=Efficiency
ethics training aka
corp COMPLIANCE training (related to COMPLIANCE OBJ)
what do STRATEGIC OBJ do? (orcS)
support the mmission (strat obj are implemented via various strategies & objectives)
which component of ERM (CRRRIMES) addresses reporting deficiencies?
MONITORING
which component of ERM (CRRRIMES) addresses assigning authority & responsibility?
CONTROL/INTERNAL ENVIRO
event identification occurs ____ the development of objectives
AFTER - events will either favorably or unfavorably impact the achievement of objectives
RISK RESPONSE associated with 1. self insuring or 2. tolerating current conditions or 3. doing “nothing”
ACCEPTANCE
RISK RESPONSE associated with 1. diversification or 2. acts that may mitigate risk/exposure or 3. relocation
REDUCTION
RISK RESPONSE associated with 1. insuring against losses or 2. entering joint venture
SHARING
RISK RESPONSE associated with eliminating/selling bus unit/product line/geo segment
AVOIDANCE
listing risks from PUBLISHED INDUSTRY SOURCES is a technique known as
EVENT INVENTORY
residual risk is the amount . . .
that remains after mgmt responds
inherent risk is the amount. . .
that will be paid if mgmt does NOTHING
how many org layers should exist b/n CFO and those involved in financial reporting?
3
ABC
Activity Based Costing
securities fraud (misrepresent financials) may be fined and/or imprisoned for up to ____ years
25
a director is protected against being liable for losses under the
business judgement rule
BoT has a ____ responsibility/relationship to the co
FIDUCIARY
a ____ illustrates a process & potential problems that contribute to the occurrence of defects
FISHBONE DIAGRAM
a ____ illustrates the performance of a process in relation to acceptable upper & lower limits of deviation (RANGE)
CONTROL CHART (goalpost conformance)
_____ are used to determine the qc issues that are most FREQUENT/costly
PARETO DIAGRAMS
_____ shows the individual and cumulative frequency of qc issues (defects)
PARETO DIAGRAMS
_____ is comparing a co’s fin data to published industry info
BENCHMARKING
____ may be easily identified by the use of a HISTOGRAM and a LINE GRAPH
PARETO DIAGRAMS
On a Pareto Diagram qc issues are displayed from ____ to ____ frequent
MOST to LEAST
Fishbone diagram aka
CAUSE & EFFECT diagram (analyze problems that contribute to the occurrence of defects)
elements of fishbone diagram include (MMMM)
Machinery, Materials, Method, Manpower
characteristics of performance measures (8-13131)
(GCCCUBBE) G=relate to org/co GOALS; C=reflect CRITICAL success factors in balanced score card; C=under CONTROL/influence of ee; C=used CONSISTENTLY; U=UNDERSTOOD by ee; B=BALANCE long term & st issues; B=influence BEHAVIOR; B=BOTH eval & reward ee; E=EASILY measured
focus group help improve what objective? ORCS
Operating
supporting/implementing the co mission & vision is related to what objective? ORCS
Strategic
Carry costs are?
the cost of CARRYING invy
Sunk costs are?
in the PAST and UNAVOIDABLE
Committed costs are?
in the FUTURE and UNAVOIDABLE
MIXED costs are?
a MIX of variable & fixed
in allocating joint cost to joint product. . .sp-dc=
sp @ split off
COGM aka CO Jobs Completed =
DM+DL+OH ‘applied’+B.wip-E.wip
CONVERSION COSTS =
DL + OH
addtnl IM (indirect materials) increases
factory Overhead CONTROL (decrease stores CONTROL)
overapplied = control dr?cr?
credit
a ____ is a causal factor that increases the total cost of an objective
COST DRIVER-often nonfinancial (activities that cause costs to increase as the activity increases)
cost that is fixed PER UNIT =
VC
plant-wide application rates of OH to machine hours is a ____ costing apprroach to allocating costs
TRADITIONAL
manufacturing costs =
DL+DM+OH(applied)
____ emphasizes lt product analysis (when fc become vc)
ABC
ABC costing is ____ for external reporting & ____ for internal reporting
ABC costing is NOT ACCEPTABLE for external reporting & ACCEPTABLE for internal reporting
JOB costing is ____ for external reporting & ____ for internal reporting
JOB costing is ACCEPTABLE for external reporting & ACCEPTABLE for internal reporting
VARIABLE costing is ____ for external reporting & ____ for internal reporting
VARIABLE costing is NOT ACCEPTABLE for external reporting & ACCEPTABLE for internal reporting
PROCESS costing is ____ for external reporting & ____ for internal reporting
PROCESS costing is ACCEPTABLE for external reporting & ACCEPTABLE for internal reporting
____ costing is collects fin & operating data on the basis of the underlying nature & extent of the cost drivers
ABC
Formula for COGS
COGM +B.FG -E.FG
