BEC CPA 6

Question 1

Sales Volume variance explanation

Answer 1

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

Question 2

Flexible budget OH variance

Answer 2

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

Question 3

Under an oligopoly structure, strategic plans focus on:

Answer 3

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

Question 4

Residual income equation

Answer 4

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

Question 5

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

Answer 5

Manual extraction

Question 6

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

Answer 6

Activity-based costing

Question 7

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

Answer 7

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

Question 8

Residual income equation

Answer 8

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

Question 9

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

Answer 9

Increase the total revenue

Question 10

Under monopolistic competition, strategic plans focus on:

Answer 10

Maintaining the market share and planning for enhanced product differentiation

Question 11

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

Answer 11

A diagonal combination

Question 12

Boxplot

Answer 12

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

Question 13

Productivity Ratios

Answer 13

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

Question 14

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

Answer 14

Profit center equipment requests

Question 15

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

Answer 15

Restricting access to the computer center by use of biometric devices

Question 16

Descriptive vs Prescriptive analytics

Answer 16

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

Question 17

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

Answer 17

Forecasting scenarios

Question 18

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

Answer 18

Tender offer

Question 19

Responsibility of the Information Technology Steering Committee

Answer 19

Guide and oversee development and acquisition

Question 20

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

Answer 20

Increase market-clearing quantiy

Question 21

Sanity test

Answer 21

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

Question 22

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

Answer 22

Aggregate and report data for strategic planning

Question 23

Price elasticity of demand equation

Answer 23

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

Question 24

Pareto diagram

Answer 24

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

Question 25

Return on investment equation

Answer 25

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

Question 26

Joint costs allocated using NRV approach

Answer 26

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

Question 27

Equity Carve-out

Answer 27

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

Question 28

Tender offer

Answer 28

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

Question 29

Vertical Combination

Answer 29

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

Question 30

Diagonal Combination

Answer 30

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

Question 31

Incremental vs differential backup

Answer 31

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

Question 32

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

Answer 32

All inputs are vareiable

Question 33

Which activities would most likely detect computer-related fraud?

Answer 33

Reviewing the systems-access log

Question 34

Total Quality Management (TQM) has what 3 characteristics?

Answer 34

• Customer focus
• Continous Improvement
• Quality Circles