BEC 5&6 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
Information Quality
(FAIR) F=Fair; A=Accurate,Accessible,Appropriate, C=Current; T=Timely
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
FC / CM% =
Breakeven
Critical Success Factors are classified as 4 (hint Financial & non financial)
Human resource(aka Learning & Growth & Innovation), Business process, Customer satisfaction, Financial performance
COGM =
DM+DL+OH app + Bwip - Ewip
COGS =
COGM + Bfg - Efg
IRR =
Investment / Cash Flows = PV Factor
NPV =
Disc Cash Flow (after tax) - Initial Investment
Profitablility Index =
pv of future cash inflows / pv of initial investment =
CAPM formula =
Risk free rate + Beta (Market rate - Risk free rate)
NI / Investment =
ROI
“not taking discount” Q formula =
(360 / pay period ‘30’ - disc period ‘10’ days) x (disc % / 100% - disc%)
____ / Ave Ass = Ass TO
SALES
Cash Conversion Cycle =
Invy conversion period + A/R collection period - A/P deferral period
Invy conversion period + A/R collection period - A/P deferral period =
Cash Conversion Cycle
ebitda / interest expense =
times interest earned
included in disc cash flow anal 4
- future op cash save; 2. future ass dc; 3. current ass dc; 4. tax effects of future ass depre
data hierarchy
character, field, record, file, db
Business Info System (BIS) consists of
Hardware, Software, Network, Data, People
BIS allow a business to perform whay functions on data
(DePiCTS) Collect, Process, Store, Transform, Distribute
7 components of COBIT framework
(ICE RACE) Integrity, Confidentiality, Efficiency, Reliability, Availability, Compliance, Effectiveness
COBIT IT governance 5
Performance Measurement; Resouces mgmt; Risk mgmt; Strategic alignment
PO AI DS ME
Process & Organize; Acquire & Implement; Deliver & Support; Monitor & Evaluate
3 tier architecture consists of
Desktop client, Application, Database
the TROUGH is characterized by
unused capacity & unwillingness to risk invsesment
decrease in AGGREGATE supply or demand is a sign of
a recession
manu issues that take place at the PEAK of econ cycle
Labor shortage & Capacity shortage
Factors that cause shift left
(TWICE Gov (Up,Down)) Taxes; Down; Interest rates; Consumer confidence; Exchange rate, Gov’t spending
what unemployment (3) still exists when there is ‘full employment’
frictional, structural, seasonal
not consistent with full employment
cyclical unemployment
cyclical unemployment results from
a recession
inflation is good for those holding fixed ____
debt (bad for the a/r)
____ unemployment is a mismatch b/n worker skills and avail jobs
structural
____ unemployment is associated with time need to match seekers with jobs
frictional
expenditure approach to computing GDP includes
(GICE) Gov’t spend; cap Invest; Consumption; net Export/imports
purchase of gov’t securities ____ the money supply
INCREASES (purchase to put money in circulation)
nominal interest - inflation rate =
the REAL interest rate
CPI (consumer price index) measures
inflation
CPI (this period) - CPI (last) / CPI last =
inflation
____ is characterized by large group of sellers producing differentiated products
Monopolistic competition
____ is characterized by few barriers, firms exerting SOME influence over price and market
Monopolistic competition
____ is characterized by few firms, sig barriers, differentiated products, fixed prices, kinked demand
Oligopoly
product demand is ____ elastic when more substitutes are available
MORE
elasticity of demand =
% change in demand / % change in price
many substitutes means price ____
IS ELASTIC
porter’s 5 forces
(SCECS) substitutes; competitiveness; entry; customers; suppliers
processes undertaken by Project Manager
authorization, planning, closing, managing expectations
processes undertaken by Project Sponsor
interfacing b/n org & project, responsible for overall project delivery,
processes undertaken by Steering Committee
approving deliverables/initiatives
BRIC nations
Brazil, Russia, India, China
constant growth model assumes
the stock price will grow at the same rate as the dividend
mandatory guidance for internal auditing includes (3)
definition of internal auditing; code of ethics; International Standards for the Professional practice on internal auditing
