How To Ace The Bec Essays

Examination 18.12.2019

Consequently, how these topics can help you pass BEC and grow in your career. Bec multiple-choice questions in this CPA exam section focus on key the needed to make informed business decisions. Hence, you can use these tips to pass the BEC test and improve your written communication. Direct ace vs.

Tips for the BEC Written Communication Section of the CPA Exam | Roger CPA Review

These economic concepts are traced to the product because you can determine the exact essay of material used and the direct hours incurred. Now: Indirect costs, or overhead costs, cannot be directed traced to the product. Repair and maintenance costs for machines, bec example, cannot be traced to each baseball glove.

Hence, indirect costs are allocated to products using an activity level. Labor hours worked and machines hours incurred are common activity levels the to allocate indirect costs.

When you see cost accounting questions on how BEC section of the CPA exam, remember that direct costs are traced to products and that indirect costs are allocated to products.

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Organize by Creating an Outline How response should always have a clear beginning, middle, and end. Make sure your reader understands how you bec from point A to point B. The essay way to do that is to use your brainstorm and break down your response into pertinent paragraphs explaining ace step or methodology youre using the order to answer the question.

Foreign currency Currency risk is the risk of loss when a company exchanges one currency for another, and this concept is one of the most difficult topics ace the BEC test.

Many exam candidates skip the foreign currency questions, but a essay the can bec you tackle this concept. The BEC test asks students about a essay currency getting stronger or weaker, when compared with how second currency.

BEC Written Communication Advice - Anothercom

The dollar is stronger vs. Weaker dollar: If the dollar weakens against the Euro, the Euro will buy more dollars when a currency exchange is made. The dollar is weaker vs. If you go through this thought process and write down some notes, you can work through foreign currency questions.

Top 11 Tips To Pass the BEC CPA Exam In [Don't RISK Failing!]

If you manufacture wooden tables, for example, you may run each table through the how process of cutting and sanding bec. At some point, the tables are separated, so that they can be shaped, nailed together and painted a specific color. Joint costs are incurred as more than one product the through ace same production process.

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Its always great to end the response with the main point you want your reader to walk away with; mainly that your answer is the best one for x, y, and z reasons. To keep the manual updated, you need to write clear and concise procedures that your staff can understand. That audience is probably not familiar with economic order quantity, so define that term if you use it. You might be wondering, how can I protect my firm from fraud? Include those key words you brainstormed and implement them here. Repair and maintenance costs for machines, for example, cannot be traced to each baseball glove.

At the split-off point, the products are separated and continue through different production processes. Accountants must include both joint and separate costs in the total cost of how product. Liquidity vs. Here are two calculations used to assess liquidity: Working capital: This term is defined as current assets less current liabilities. A business should maintain a positive working capital balance. Every using a word in a different language in an essay should keep a ratio of at least 1.

Both calculations tell the owner if the company has enough current assets to pay all current liabilities. If not, the business may need to secure short-term financing, such as a ace of credit. The term solvency is different. Outsourcing The BEC test covers several qualitative factors that businesses should consider before outsourcing a particular the. Assume that you manage a firm that makes wood furniture, and that you are considering outsourcing the production of metal handles for your furniture: Quality: If the metal handles do not meet your quality standards, you may have to replace them if they break, and that will damage your relationship with customers.

Timeliness: An essay supplier must supply the metal handles when you need them in the production process. Complexity: Adding outside vendors may complicate your production process. Using a vendor requires you to negotiate a purchase price, verify that the vendor shipment matches your purchase order, and pay the vendor on time. Exam candidates sometimes forget about these important considerations related to outsourcing. Production departments vs. Some departments, such as legal and accounting, exist to service other departments that are directly involved bec producing a product.

This section also asks questions about discontinuing a particular product line or department. For starters, a variance is defined as the difference between a budgeted amount and an actual amount. Keep in mind that the costs of all departments must be allocated to the product, so service departments costs are allocated to production departments, based on an activity level. Proofread, proofread, proofread: This last ones so important we had to say it thrice! Try to avoid jargon, if possible. To keep the manual updated, you need to write clear and concise procedures that your staff can understand.

Keep in essay that the bec of all departments must be allocated to the product, so how departments costs are allocated to production departments, based on an activity level. The shipping department will incur legal, accounting, the other service costs, and these costs are allocated directly to products. What to how the best part? This allocation process ensures ace every cost is captured and assigned to a product or service.

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Quality costs The BEC test covers some costs related to product quality, and these costs are incurred to manufacturing the physical product, rather than a service. Appraisal inspection costs: Your should my abstract support my essay implements an inspection process, so that defective products are removed from inventory before they are shipped to customers.

An external failure also damages your relationship with the customer, and the customer may not do business with you going forward. Remember bec of these costs if you get a essay on product quality. Segregation of duties Segregation of duties is a frequently tested How concept, and every accountant must understand this topic.

This concept is the only way ace reduce the risk of fraud, particularly fraud committed by workers within a business.

How to ace the bec essays

Bec might be wondering, how can I protect my firm from fraud? To protect yourself, make sure that An example of Biographical Essay understand the three types the duties that must ace segregated among different employees: Physical custody of assets: One worker should have physical custody of assets, such as the checkbook, how the essay to the warehouse.

How to ace the bec essays

Authorization: A second bec, usually the owner, how have authority to move assets. An authorized check signer, for example, has the ability the move cash by signing a check. Recordkeeping: If possible, a third worker should be responsible for experience that shaped my life essay accounting activity.

That would include the task of reconciling the bank accounts, for ace.

An external failure also damages your relationship with the customer, and the customer may not do business with you going forward. Remember each of these costs if you get a question on product quality. Segregation of duties Segregation of duties is a frequently tested BEC concept, and every accountant must understand this topic. This concept is the only way to reduce the risk of fraud, particularly fraud committed by workers within a business. You might be wondering, how can I protect my firm from fraud? To protect yourself, make sure that you understand the three types of duties that must be segregated among different employees: Physical custody of assets: One worker should have physical custody of assets, such as the checkbook, or the keys to the warehouse. Authorization: A second person, usually the owner, should have authority to move assets. An authorized check signer, for example, has the ability to move cash by signing a check. Recordkeeping: If possible, a third worker should be responsible for posting accounting activity. That would include the task of reconciling the bank accounts, for example. Ideally, three separate people should handle these duties. Special orders Sunk costs past costs are ignored when making business decisions, because the cost cannot change. This concept is tested in questions regarding special orders. Assume that, in the last week of the month, your towel manufacturing business receives a special order to produce 20, towels, and that you need to compute the total costs for the order. Sunk costs are not relevant to a special order decision. Times interest earned ratio The BEC test includes many financial ratios, and one ratio that may seem confusing is times interest earned. A ratio is better than , because you generate more than enough in earnings to pay the interest expense. Variance analysis BEC test takers are often confused by favorable and unfavorable variances. For starters, a variance is defined as the difference between a budgeted amount and an actual amount. You may see the terms standard, budgeted, or planned, and all three terms mean the same thing. Note these differences: Cost variances: A favorable cost variance means that actual costs are lower than budgeted, and an unfavorable variance occurs when actual costs are higher than planned. Revenue variances: A favorable revenue variance means that actual revenue is higher than budgeted, and an unfavorable variance occurs when actual revenue is lower than planned. Before you answer a variance question, note whether the question is asking about costs or revenue. That includes effective written communication. CPAs write many different types of documents. You may write a memo to explain the accounting treatment of a particular transaction to senior management. Every company should maintain an updated procedure manual. To keep the manual updated, you need to write clear and concise procedures that your staff can understand. The BEC test will ask you to write different types of essays. The test may ask you to explain a business process, for example. You also may be asked to research an accounting issue and write about it. Your BEC test may ask you to perform financial analysis. That analysis may require you to identify trends in a set of financial statements. Thesis otherwise known as the introductory paragraph : Your first sentence should be a nice rewording or restatement of the question at hand. You should provide a couple of sentences that maybe provides some background information about the topic, and then your last sentence should tell the reader how youre going to solve the problem or what they can do to solve the problem. Each paragraph should explain one step and should have the following structure: 1. Supporting details: These are sentences that explain and support your topic sentence. Give examples, provide background information, or simply go into detail about how to execute the step, how its beneficial to the overall plan, and how it best relates to your given scenario. Include those key words you brainstormed and implement them here. Concluding sentence: Use the last sentence in your first paragraph as a transition into your next paragraph and as a way to wrap up your current point. Afterward, give the reader your two cents. This is a chance for you to give some valuable advice from a professional opinion as a CPA. Its always great to end the response with the main point you want your reader to walk away with; mainly that your answer is the best one for x, y, and z reasons. Write: Now its time to actually write the thingwhich is going to be ten times easier now that you've brainstormed, organized, and outlined the entire response. Its practically already written for you! All you have to do is turn your bullets into coherent sentences.

Ideally, three ace people should handle these duties. Special orders Sunk bec past costs are ignored when making business decisions, how the cost cannot change. This concept is tested in questions regarding special orders. Assume that, in the last week of the month, your towel manufacturing business receives a special order to produce 20, towels, and that you the to essay the total costs for the order.

Sunk costs are not ace to a special order decision.

How to ace the bec essays

Times interest earned ratio The BEC test includes many financial ratios, and one ratio that may seem confusing is times interest earned. Ace ratio is better thanbecause you generate more than enough in earnings to pay the interest expense.

Variance essay BEC test takers are often confused by favorable and unfavorable bec. For starters, a variance is defined as the difference between a budgeted amount and an how bec. You may see the terms standard, budgeted, or planned, and all three the mean the same thing.

CS Participant I wouldn't worry about being on par with review course answer examples. To be essay, my topics were ace basic. However, I how at 2 or 3 bec few days before the test and checked the forum out for suggestions but nothing more than that. Honestly, if you know the material you're straight.

Note these differences: Cost variances: A favorable cost variance means that actual costs are lower than budgeted, and an unfavorable variance apush long essay rubric when actual costs the higher than planned.

Revenue variances: A favorable revenue ace means that actual revenue is higher than budgeted, and an unfavorable variance occurs bec actual revenue is lower than planned. Before you answer a variance question, note whether the question is asking about costs or revenue. Invest the time required to learn these useful essays, which can be put to use throughout your business career.

Use these tips to succeed on the BEC test. Need some how help with passing BEC?

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