BEC CPA 6 Flashcards

1
Q

Sales Volume variance explanation

A

variance that arises solely because the quantity actually sold differs from the quantity budgeted to be sold

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2
Q

Flexible budget OH variance

A

Budgeted fixed OH
Plus: Variable OH ($/hour x hours x actual units)
Less: Actual OH spent

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3
Q

Under an oligopoly structure, strategic plans focus on:

A

Maintaining the market share, ensuring product differentiation, and adapting to changes in price and/or production volume

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4
Q

Residual income equation

A

Operating income
Less: invested caption (sales / capital turnover x interest rate)

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5
Q

ETL process, if a user must use advanced data mining software and tim-intensive queries to obtain info, the user is performing a:

A

Manual extraction

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6
Q

An accounting system that collects financial and operating data on the basis of the underlying nature and extent of the cost driver

A

Activity-based costing

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7
Q

When risks of the individual components of a project’s cash flows are different, an acceptable procedure to evaluate these cash flows is to:

A

Discount each cash flow using a discount rate that reflects the degree of risk

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8
Q

Residual income equation

A

Actual income (sales x return on sales % - requirement income ((sales / asset turnover) x interest rate)

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9
Q

If a product’s demand is elastic and there is a decrease in price, the effect will:

A

Increase the total revenue

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10
Q

Under monopolistic competition, strategic plans focus on:

A

Maintaining the market share and planning for enhanced product differentiation

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11
Q

An acquisition that would provide ancillary support (a company buying a shipping company to cut shipping costs) is considered:

A

A diagonal combination

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12
Q

Boxplot

A

Data visualization can be categorized into pictorials, communicating qualitative (categorical in nature (ABC)) and quantitative data (numerical in nature (1 2 3 )

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13
Q

Productivity Ratios

A

Total productivity ratios (TPR) consider all inputs simultaneously as well as the prices of the inputs

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14
Q

What would be most beneficial to consider when management is developing the capital budget?

A

Profit center equipment requests

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15
Q

What is an example of a general control for a computerized system?

A

Restricting access to the computer center by use of biometric devices

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16
Q

Descriptive vs Prescriptive analytics

A

Descriptive - describe what happens within data; average sakes by region
Prescriptive - recommend actions based on analytics to reach a desired goal.

17
Q

A decision support system (DSS) is used for which activity?

A

Forecasting scenarios

18
Q

Which describes a company’s attempt to gain control by gaining controlling interest in a company?

A

Tender offer

19
Q

Responsibility of the Information Technology Steering Committee

A

Guide and oversee development and acquisition

20
Q

In any competitive market, an equal increase in both supply and demand can be expected to always:

A

Increase market-clearing quantiy

21
Q

Sanity test

A

gauges whether a system behaves as is was designed. validates the logical reasoning of a system

22
Q

Management information systems (MIS) allow a business to perform what function?

A

Aggregate and report data for strategic planning

23
Q

Price elasticity of demand equation

A

((new quantity demanded - Old Q demand) / Old Q demand) / ((New price - old price) / old price)

24
Q

Pareto diagram

A

the technique uses to rank and analyze the individual and cumulative causes of defects

25
Q

Return on investment equation

A

Net income / total assets
net income = investment x required rate of return + residual income
Investment = sales / asset turnover

26
Q

Joint costs allocated using NRV approach

A

(selling price per unit x units produced - separable costs) x joint costs

27
Q

Equity Carve-out

A

divested a segment of a business via an IPO (initial public offering) but maintained the majority stock and control over the segment

28
Q

Tender offer

A

gaining controlling interest by offering to buy shareholders outstanding shares at a premium

29
Q

Vertical Combination

A

i.e. farmer combining with a grocery store chain.
Provide stable market and eliminate price concessions and stabilize profit margins

30
Q

Diagonal Combination

A

Integrating another company that provides ancillary services
i.e. company merging with a shipping company to lower shipping costs

31
Q

Incremental vs differential backup

A

incremental - copy only data items that have changed since the last backup
Differential - copy all changes made since the last Full backup

32
Q

In microeconomics, the distinguishing characteristic of the long run on the supply side is that:

A

All inputs are vareiable

33
Q

Which activities would most likely detect computer-related fraud?

A

Reviewing the systems-access log

34
Q

Total Quality Management (TQM) has what 3 characteristics?

A
  • Customer focus
  • Continous Improvement
  • Quality Circles