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
