Bender Day 18

Question 1

ERM: what complement is an entity following when it defines is risk appetite?

Answer 1

Strategy and Objective setting

SOAR

MCQ-06258

Question 2

What can cause a Material Efficiency Variance?

Answer 2

1. Actions of purchasing dept
2. Design of the product
3. Skull level of labor force

Note: Sales volume of a product does not cause this

MCQ-04170

Question 3

The impact of a government price support program would lead too?

Answer 3

Surpluses

Acts as a subsidy and will encourage suppliers to supply beyond the equilibrium point

MCQ-03735

Question 4

Equation: Cost benefit analysis

Answer 4

Potential lost × (Potential % - Risk of Loss) = Net Benefit

MCQ-14816

Question 5

What are the benefits of improved cash budgeting?

Answer 5

1. Displaying the cash effects of the master budget on actual cash Inflows and outflows from operations
2. Determining when additional sources of financing (either ST or LT) are necessary and planning cash expenditures
3. The optimal use of trade credit

MCQ-04113

Question 6

In a decision analysis situation, which costs are Relevant

Answer 6

1. Incremental cost
2. Opportunity Cost
3. Avoidable costs

Historical cost is not relevant

MCQ-03552

Question 7

If an organization determines it’s data set has biases or is irrelevant, which component of Big Data is compromised?

Answer 7

Veracity - the trustworthiness of data

MCQ-13000

Question 8

Equation: Free Cash Flows

Answer 8

Net Income + Noncash Expenditures - Increase in Working Capital - Capital Expenditures

MCQ-12460

Question 9

Net Present Value as used in investment decision making is stated in terms of which of the following options?

Answer 9

Cash Flow

MCQ-05570

Question 10

Equation: High-Low Method

Answer 10

= (Total Cost#1 - Total Cost#2) ÷ (Variable Unit#1 - Variable Unit#2)
= Variable Cost

Then you need to determine Fixed Costs

MCQ-07723

Question 11

How can Equivalent Units of Production be computed?

Answer 11

1. FIFO Method
2. Weighted Average

MCQ-11052

Question 12

Equation: Equivalent Units of Production - Weighted Average

Answer 12

Units Completed
+ Ending WIP × % Completed
———————————————–
= Equivalent Units

Cost per Equivalent Units:
= (Beg. Cost + Current Cost) / Equivalent Units

MCQ-11052

Question 13

Equation: Equivalent Units of Production - FIFO

Answer 13

Beg. WIP × % to be completed
+ Units Completed – Beg. WIP
+ Ending WIP × % Completed
————————————————-
= Equivalent Units

Cost per Equivalent Unit:
= Current Costs ONLY / Equivalent Units

MCQ-11052

Question 14

Equation: APR of Quick Pmt Discount

Answer 14

=
(360 / Pay Period - Discount Period)
×
(Discount % / 100% - Discount %)

REMEMBER: subtract the % rate of money borrowed to pay early

MCQ-07798

Question 15

COSO Components of Internal Control

Answer 15

Control Environment
Risk Assessment
Information & Communication
Monitoring
Existing Control Activities

MCQ-04391

Question 16

Sub-Components of “CRIME”

Answer 16

Control Environment - EBOCA
- Ethics & Integrity
- Board Independence
- Org. Structure
- Competence
- Accountability

Risk Assessment - SAFR
- Specify Objectives
- Assess Changes
- Fraud
- Risk Analyze

Info. & Comm. - OIE
- Obtain/Use info
- Internally Communicate
- External Communication

Monitoring - SOD
- Separate Evaluations
- Ongoing Evaluations
- Communicate Deficiencies

Existing - CATP
- Control Activities
- Technology
- Policies & Procedures

MCQ-04391

Question 17

Equation: Net Working Capital

Answer 17

CA – CL

TBS-002343