A benefit of using a market-based transfer price is: a. the economic viability and profitability of each division can be evaluated individually. b. the profits of the transferring division are sacrificed for the overall good of the corporation. c. the profits of the division receiving the products are sacrificed for the overall good of the corporation. d. none of the abovee

Q: What are joint costs? How do they affect the sell or process further decision?

A:

Q: THE MAIN DIFFERENCE BETWEEN EX-ANTE AND EX-POST ECONOMIC PROFIT a. Representing the opportunity…

A: b. is called the hold-up problem

Q: In a transfer pricing decision, which of the following factors should be considered?    Both A and B…

A: Transfer pricing refers to the pricing strategy and decisions made within transnational companies…

Q: Define transfer pricing and elaborate on FOUR (4) of its purposes.  B. In deciding a transfer…

A: There are some transactions that take place within different divisions of an enterprise. Sometimes,…

Q: hat are

A: The main objective of any business is to provide the goods and services to our esteemed customer and…

Q: Economic Profit?

A: Economic profit is different from the accounting profit earned, accounting profit is calculated at…

Q: Many organisations use transfer pricing when transferring products between different divisions of…

A: Transfer pricing is the process of determining the price at which goods or services are exchanged…

Q: Using the concept of substitution and income effect, explain why means-tested transfer programs…

A: The income effect  is basically the shift in consumer consumption of items as a result of  income…

Q: 15) Macon Corporation has no excess capocity l the transfer-pricing nule, opportunity cost would be…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Transfer prices can be based on any of the following methods except   a)variable cost…

A: Transfer prices can be based on any of the following methods except B) replacement cost

Q: An advantage of the residual income measure over the return on investment measure is: residual…

A: Residual income approach involves net income after deductions of cost of capital from operating…

Q: Which of the following statement(s) is/are false? (A) Residual income can be used to compare…

A: Neither of these is false. Explanation:Both statements are true. Residual income is a performance…

Q: In each of the cases below, assume Division X has a product that can be sold either to outside…

A: Transfer pricing is the price at which one division sells or provides goods or services to another…

Q: Explain with examples these methods of transfer pricing Comparable Uncontrolled Price Method •Cost…

A: Comparable Uncontrolled Price (CUP) Method: The Comparable Uncontrolled Price (CUP) Method is a…

Q: Based on the CAPM, how would one adjust the corporation’soverall cost of capital to establish the…

A: Investors always want minimum returns based on CAPM for investing their money in the company. It…

Q: Biological assets are measured as follows Initial…

A: The biological assets are the assets that include animals and plants.

Q: tiveness analysis (CEA) differs from cost-benefit (B/C) analysis in that: Select one: a. CEA is more…

A: Cost effective analysis : A cost-effectiveness analysis looks at both the expenditures as well as…

Q: Public goods have the following characteristics Orivaled Oexcludable Onon-excludable Olow social…

A: Different type of goods provide different economic benefit and private and public goods and to the…

Q: What is the primary disadvantage of utilizing revenue from operations to evaluate investment…

A: Investment centers are businesses that invest in other companies to boost their profits.

Q: Which of the following is true of hybrid transfer prices? A. The cost used in hybrid transfer prices…

A: Transfer price refers to the price at which related parties sell and purchase the goods. These…

Q: Identify the one true statement. a. Benefit-cost analysis is recommended for a formal economic…

A: B-C Analysis is known as the Benefit-Cost Analysis which is commonly used to evaluate long-term or…

Q: The transfer price between two internal divisions will represent O an expense, cost revenue, cost…

A: Revenue for the Selling Division -The transfer price serves as the revenue or sales amount for the…

Q: Analyze the following statement: When purchasing power parity really holds, comparative advantage…

A: An exchange rate is the price of one currency against another. Exchange rates are either fixed or…

Q: This transfer prices basis is considered to be the most inferior one a. variable cost transfer pice…

A: The concept market transfer price is more associated with transfer price in method that sells the…

Q: Explain to management the circumstance that would have to prevail for both marginal and absorption…

A: Marginal and absorption costing are two different approaches to dealing with fixed production…

Q: Why is the similarity between a perfect competition and monopoly is the fact that both is faced with…

A: A monopolistic market and a perfectly competitive market are two market structures that have several…

Q: How should managers consider income tax issues when choosing a transfer-pricing method?

A:

Q: Monopolists sometimes practice price discrimination to O a. get rid of surplus product. O b,…

A: Correct answer:Option d:Increase profit

Q: B. In deciding a transfer pricing method, advise management on: i. negotiated transfer pricing ii.…

A: Transfer pricing is the price which is to be calculated if there is any transaction between related…

Q: What is economic surplus defined as? A) The total revenue earned by a firm B) The difference between…

A: The correct answer is: Option (B) The difference between total revenue and total costs Economic…

Q: Utility refers to the:   Question 55 options:   usefulness of a product   extent to which a…

A: Utility is important aspect for the customer.

Q: Select Among the choices, this transfer prices basis is considered as the most inferior one: a.…

A: Two or more departments of a company or interrelated companies or enterprises may transfer their…

Q: The reduction in profit arising from the actions of managers being self-serving or possible conflict…

A: This reduction in profit due to self-serving actions or conflicts of interest often falls under the…

Q: In which scenario would an adjusted sales value be used to assign costs? a. If abnormal losses…

A: Joint products refer to the products which are produced simultaneously as their raw material is the…

Q: Which of the following is an economic motivation for an acquisition? Using a cash surplus. b.…

A: When there is cash surplus and there is a means to park such surplus then acquisition is one option.…

Q: The approach that requires the transfer price to be less than the market price but greater than the…

A: Standard cost is the cost that has been fixed by the company at the beginning of the period.…

Q: there no profit sharing ratio for the net income distribution board?

A: Partnership is a aggreement between two or more persons to operate a business in consideration of…

Q: The transfer price is a revenue to sales devision and cost to the buying devision. Say true or False…

A: Transfer price is a price at which a transaction of two related divisions of the same corporation…