BEC 5 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
OPERATING budgets contain what factors? 4
(PPSS)Personnel, Production, Sales, Selling/Admin
3 major section of CASH BUDGET
- Cash Available; 2. Cash Disbursement; 3. Financing=line of credit
variable needed for flex budgets
- rev per unit; 2. vc per unit; 3. fc per unit
Order of budget preparation (5)
(Some People Make Cash Payments) 1. Sales; 2. Production; 3. Materials/Labo/OH purchased; 4. Cash; 5. Pro Forma F/s
3 purposes of standard costing systems
- cost control; 2. variance analysis; 3. learn from & improve processes
4 measures of SBU to which mgmt is held accountable
(CRPI=mgmt is creepy) C=Cost; R=Revenue; P=Profit; I=Investment
FEEDBACK w/in financial scorecards must be (AT US)
Accurate, Timely, Understandable, Specific
Factors w/in the BALANCED SCORECARD
(FICA) F=Financial; I=Internal bus processes; C=Customer satisfaction; A=Advancement of innovation & hr develpmnt
3 examples of off b/s transactions
- op lease; 2. lawsuits; 3. related party trans
IT Components
(P HaNDS) People; Hardware; Network; Data; Sortware
Heirarchy of data
Bit; Byte; Entity; Attibute; Field; Record; File; Database
7 info criteria
(ICE RACE) Integrity; Confidential; Efficiency; Reliability; Availability; Compliance; Effectiveness
4 Domains of COBIT Framework
(PO AIDS ME) 1. PO=Plan & Organize; 2. AI=Acquire & Implement; 3. DS=Deliver & Support; ME=Monitor & Evaluate
Supply Chain Mgmt (SCM) functions
(PMSD) Planning; Making; Sourcing; Delivery
4 systems risk categories
(SOFI) Strategic; Operating; Financial; Information
gdp EXPENDITURE approach
(GICE) Gov’t purchases; Investment; Consumption; net Exports-Imports
gdp INCOME approach
(IPIRATED) Income of proprietors; Profits of corps; net Interest; Rental income; Adj for foreign income; Taxes; EE compensation; Depreciation
Depreciation aka
Capital Consumption Allowance
if gdp is down, employment will be ____
down
as inflation increases, UNEMPLOYMENT ____
DECREASES
gov’t spend more, tax less in order to
stimulate DEMAND
nominal interest rate =
real risk-free rate (aka tvm) + expected inflation rate
NOMINAL INTEREST RATE & INFLATION are ____ related
DIRECTLY
money supply & interest rates are ____ related
INVERSELY
M2 are
cd less than $100k; mm; mutual funds; savings accts
M3 are
cd greater than $100k
LOWERING the discount rate ____ the money supply
INCREASES
the fed res BUYING gov’t bonds ____ the money supply
INCREASES
FC / CM%
BE
which costing method produces the LOWEST invy value
VARIABLE
y is the
dependent variable
x is the
independent variable
Demand dictates
prices & vice versa
factors that SHIFT DEMAND curve
(WRITEN) W=Wealth UP, d-UP; R=Related good (comp$ 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)
a SHIFT in deman is not due to
a change in the PRICE of a good
if the price of a substitue product INCREASES, demand for original product will
INCREASE b/c now seen as a bargain
if the price of a complimentary product INCREASES, demand for original product will
DECREASE
factors that SHIFT SUPPLY curves
(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
a ____ is a price that Is below equilibium price that causes shortages to develop
PRICE CEILING (causes prices to be artificially low, creating greater demand than supply available (ie rent control))
a ____ is a price that Is above equilibium price that causes surpluses to develop
PRICE FLOOR (ie min wage)
change Dependent variable / change in Independent variable =
SLOPE
% chng Demand / % chng Price =
SLOPE
marginal costs depends solely on
VC
____ do not influence marginal costs
FC
4 market stuctures
Monopoly; Monopolistic Competition; Oligopoly; Pure Competition
Oligopoly is characterized by
few large sellers (entering market difficult to impossible)
Factor (resources) of production include
Land, Labor, Capital
a monopsony is
when there is only ONE employer in the market
Porter’s 5 Forces (factors the affect competitive environment)
- barriers to market entry; 2. market competitiveness; 3. existence of substitute products; 4. bargaining power of customers; 5. bargaining power of suppliers
supply chain (supplier of raw materials .to.
supplier of raw materials .to. Mfg .to. Wholesaler .to. Retailer
supply chain operations reference (SCOR) model includes
Plan, Source, Make, Deliver
