MyBEC Flashcards
What are the four stages of change continuum?
control baseline, change identification, change mgt and control validation
What cost basis are used for unique cost and for mass produced units
job costing and process costing
Does effective performance measures balance of long term and short term issues?
Yes. it should balance both and not one over the other
How will ABC result when compared to normal costing?
greater unit cost for low volume products
Does conversion cost places emphasis on DM?
No. DL and O/H only
ABC (activity based costing) allocates its cost to
multiple cause and effect relationship
SOX requires to report on internal controls except
mgt responsibility for internal control, assesment of effectiveness and statement of auditor report on mgt evaluation. mgt does not report any disagreements b/w mgt and auditor
Fish bone diagram does not include
manufacturing O/H since is an allocation cost. only includes cause and effect
Risk appetite is considered to be exceed when
likelihood and impact of negative events significantly exceeds residual risk. residual risk could be exceeded but not the appetite which is why would need to be significantly exceeded
The issue of indirect materials would
decrease store control and increase O/H control
Production budget is based on
sales w/ modifications for increase or decrease in inv
Regression analysis
estimates dependent based on changes of independent
Which investment should a Co. accept?
The one w/ positive NPV which means return exceeds the minimum rate
Net income tax effect on PV computation will
decrease both benefits and costs
ABC factor for a service department to producing departments
electrical power consumed
Production volume variance
variance in an absorption costing system that measures level used to set fixed cost
Addition of asset at yr end effect on ROI and Residual Income?
decreases both
Mkt rate of interest includes which interests?
risk free rate and inflation premium
Function of physical access control?
separates unauthorized individuals from computer resources
What is a product cost?
DM , DL and O/H
What denominator for ROI combines effects of operations and financing decisions?
Shareholders equity
Unix and Linux
Unix- to run interactive online applications divided in two pieces kernel and shell. Linux- design to run on PC’s to run in everything.
Decision support system (DSS)
computer based info system that provides support to managers during decision making
Minimum wage above the equilibrium will result in
excess supply (surplus) of labor
What causes a demand curve to shift to the left?
decrease in demand at all prices levels
When NRV is not determined at split-off then
subtract separable cost (additional cost) from selling price
Factors of COSO tone at the top
help people make decisions when there is no specific guidance
Cost based pricing is associated w/
price stability, price justification, fixed cost recovery
Operating leverage
fixed cost in operations which allows small change in sales produce large change in profit
Distributed database
distributed in dif pieces either local or remote
End user database
developed by end user at their workstation
System programmers
work w/ operating system and compilers
Opening mkts to foreign investments
increases growth rates and emerging stk and decreases local cost of capital
What methods of cost allocation are preferred now?
cost detail even though is more expense to obtain info. it is more specific. used to be the traditional way using company wide base allocation
What rate is used to factor differences in risk into CF analysis?
discount rates. is use to reflect the degree of the risk
Internal cost analysis
analyzed internal value ability of a Co, sources of profits and costs
Co’s organizational structures principle involves
ensures that controls are put in place
Sales price (-) cost to complete =
sales at split-off
Examples of carrying costs
obsolescence. Not handling, qty discount lost, disruption of shc’s
For Co using EOQ model and it manufactures its inventory, costs are related to
production set-up
Is the ERM involved in public relationship matters?
No. does not makes part of ERM system
What will the increase in discount rate affect the NPV?
cash inflow decrease therefore decrease NPV
Trade credit
important to small Co., short term, expensive external financing, subject to risk of buyer default
