BEC CPA 6 Flashcards
Sales Volume variance explanation
variance that arises solely because the quantity actually sold differs from the quantity budgeted to be sold
Flexible budget OH variance
Budgeted fixed OH
Plus: Variable OH ($/hour x hours x actual units)
Less: Actual OH spent
Under an oligopoly structure, strategic plans focus on:
Maintaining the market share, ensuring product differentiation, and adapting to changes in price and/or production volume
Residual income equation
Operating income
Less: invested caption (sales / capital turnover x interest rate)
ETL process, if a user must use advanced data mining software and tim-intensive queries to obtain info, the user is performing a:
Manual extraction
An accounting system that collects financial and operating data on the basis of the underlying nature and extent of the cost driver
Activity-based costing
When risks of the individual components of a project’s cash flows are different, an acceptable procedure to evaluate these cash flows is to:
Discount each cash flow using a discount rate that reflects the degree of risk
Residual income equation
Actual income (sales x return on sales % - requirement income ((sales / asset turnover) x interest rate)
If a product’s demand is elastic and there is a decrease in price, the effect will:
Increase the total revenue
Under monopolistic competition, strategic plans focus on:
Maintaining the market share and planning for enhanced product differentiation
An acquisition that would provide ancillary support (a company buying a shipping company to cut shipping costs) is considered:
A diagonal combination
Boxplot
Data visualization can be categorized into pictorials, communicating qualitative (categorical in nature (ABC)) and quantitative data (numerical in nature (1 2 3 )
Productivity Ratios
Total productivity ratios (TPR) consider all inputs simultaneously as well as the prices of the inputs
What would be most beneficial to consider when management is developing the capital budget?
Profit center equipment requests
What is an example of a general control for a computerized system?
Restricting access to the computer center by use of biometric devices
Descriptive vs Prescriptive analytics
Descriptive - describe what happens within data; average sakes by region
Prescriptive - recommend actions based on analytics to reach a desired goal.
A decision support system (DSS) is used for which activity?
Forecasting scenarios
Which describes a company’s attempt to gain control by gaining controlling interest in a company?
Tender offer
Responsibility of the Information Technology Steering Committee
Guide and oversee development and acquisition
In any competitive market, an equal increase in both supply and demand can be expected to always:
Increase market-clearing quantiy
Sanity test
gauges whether a system behaves as is was designed. validates the logical reasoning of a system
Management information systems (MIS) allow a business to perform what function?
Aggregate and report data for strategic planning
Price elasticity of demand equation
((new quantity demanded - Old Q demand) / Old Q demand) / ((New price - old price) / old price)
Pareto diagram
the technique uses to rank and analyze the individual and cumulative causes of defects
Return on investment equation
Net income / total assets
net income = investment x required rate of return + residual income
Investment = sales / asset turnover
Joint costs allocated using NRV approach
(selling price per unit x units produced - separable costs) x joint costs
Equity Carve-out
divested a segment of a business via an IPO (initial public offering) but maintained the majority stock and control over the segment
Tender offer
gaining controlling interest by offering to buy shareholders outstanding shares at a premium
Vertical Combination
i.e. farmer combining with a grocery store chain.
Provide stable market and eliminate price concessions and stabilize profit margins
Diagonal Combination
Integrating another company that provides ancillary services
i.e. company merging with a shipping company to lower shipping costs
Incremental vs differential backup
incremental - copy only data items that have changed since the last backup
Differential - copy all changes made since the last Full backup
In microeconomics, the distinguishing characteristic of the long run on the supply side is that:
All inputs are vareiable
Which activities would most likely detect computer-related fraud?
Reviewing the systems-access log
Total Quality Management (TQM) has what 3 characteristics?
- Customer focus
- Continous Improvement
- Quality Circles
