CPA BEC CH 53 part 3

  1. De jure
    Corporation that has generally complied with all the statutory requirements for incorporation except for an insignificant deviation from the statute that causes no harm to the public interest.Click to flip
  2. Secret Partner
    One who actually participates in the management of the partnership but is undisclosed. If this partner's connection with the business is disclosed, they she or he has unlimited liability.
  3. Dormant Partner
    one who is a partner with the right to management participation, but who is undisclosed and generally inactive. Once this person is disclosed, they have the same liability as any other general partner.
  4. Ostensible or Nominal Partner
    One who is not actually a partner, but who may become a partner by estoppel insofar as he/she is held out to appear to be a partner
  5. Silent Partner
    one who has unlimited liability but does not share in the management of the partnership.
  6. Composite sales BE?
    FC / *Composite CMR*Remember, this is the 1/19 (50%) + 6/19 (25%) + 12/19 (33%) thing!
  7. Explain cont marg approach in product pricing
    Under CM approach, product pricing is based upon all relevant costs plus any additional fixed costs necessary for the increased production level.
  8. What's the schedule called that represents the cost of the products completed during da period & transferred to FG inventory?
    COGM schedule!
  9. Explain what direct (variable) costing is.
    It's an inventory costing method whereby dm, dl & voh are considered to be product costs (inventoriable costs), while fixed manufacturing OH is considered to be a period cost (cost expensed in the period incurred).In absorption costing, the costs to be inventoried include ALL manufacturing costs, both variable & fixed.
  10. Explain how the cvp chart works.
    Da cvp chart shows the profit or loss potential for the range of volume within the relevant range. At any given level of output, the predicted profit or loss is the vertical diff btw the sales line & the total cost line. The BE point is at the intersection of sales & total costs.
  11. Simply put, how is BE pt defined?
    Da pt where sales less fixed & variable costs result in zero profit. Thus, the BE point is defined as the point where NI = 0!
  12. Does avg fixed cost per unit have an inverse relationship with volume?
Card Set
CPA BEC CH 53 part 3
CPA BEC CH 53 part 3