What is Transfer Pricing? What are the approaches in determining transfer prices? In your own idea, identify some best practices in transfer pricing.

Q: Explain and critically assess the general idea behind transfer pricing. Would it be beneficial for…

A: The objective of this question is to understand the concept of transfer pricing, its benefits, and…

Q: Under what conditions is a market-based transfer price most likely to be used?

A: Transfer Pricing: It is termed as the cost which is charged by the one department of the company…

Q: How would you define profit planning? What is the importance of profit planning?

A: a) Profit planning is a progression of steps being taken to arrive at an ideal level of profit. Such…

Q: Explain the difference between price-takers and price-setters.

A: When a company cannot dictate prices then it is known as price taker. On the contrary, when a…

Q: What is cost-plus pricing? Who uses it?

A:

Q: What formula do you use to calculate ROI?

A:

Q: What is investment decision making process ? And example

A: An investment decision refers to how a company's finances are to be invested in various assets in…

Q: Briefly explain the concept of economic, profitmaximizing pricing. It may be helpful to use graphs…

A: Pricing decisions: Pricing decisions is one of the most important and required decision for the…

Q: How do you calculate enterprise value?

A: Enterprise value is the measure of the total value of the company. It gives aggregate value of the…

Q: What do you understand by rate of markup on cost and rate of markup on selling price, illustrate…

A: Answer: Mark-up is nothing but the difference between a good or service’s selling price and its…

Q: Explain how useful the price mechanism is in tackling the basic economic problem?

A: the main role of price mechanism in basic economic problem is allocate scare resources in market…

Q: When should special pricing orders be accepted?

A: Special pricing order: A special order is a unique one time order made by a customer. In this order…

Q: Define the following terms, using graphs or equations to illustrate youranswers wherever feasible:…

A: APT                                                                              It is a model based…

Q: Distinguish between market-skimming pricing and market-penetration pricing.

A: Product pricing strategies: There are two product pricing strategies of a company. They are,…

Q: how present value is useful in economic decision making

A: Present value (PV) is the current value of a future sum of money or a stream of cash flows, given a…

Q: What Is Prerequisites for Successful Target and Cost-Based Pricing?

A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…

Q: Describe the approaches of target profit.

A: Target Profit: It refers to the desired amount of profit that a company expects to achieve by the…

Q: Define the following terms Cost analyses negotiation  Quality negotiation Price negotiation

A: Cost analysis negotiation, sometimes known as 'cost negotiation,' is becoming more popular. The…

Q: Define Purchase return.

A: Financial accounting is the process of recording, summarizing, and reporting all the transactions in…

Q: Define special pricing.

A: Pricing: Pricing is a process where manufacturing company fixes prices for the products that are…

Q: Determining the best approach to pricing requires a cost-benefit trade-off. Explain.

A: The best approach to pricing requires the cost benefit trade-off is explained as below, The Best…

Q: What is meant by purchasing power parity?

A: Purchasing power parity It is a measuring of the prices in various other countries that utilizes the…

Q: What is the meaning behind cost of acquisition? Please explain and provide an example.

A: By tracking the cost of acquisition, businesses can assess the profitability of their marketing…

Q: Discuss the following models in relation to purchasing power parity.

A: Comparative rates of inflation in different countries are the factors influencing the exchange rate.…

Q: Explain Pass-Through Rates, Yields, and Servicing Fee?

A: Pass-through rateA rate of interest being paid to the investors on the securitized asset after…

Q: What is market approach measurement?

A: The market approach is just like comparing one set of assets with another both having the same…

Q: Explain what is meant by trade-off theory.

A: The trade-off theory, in the context of finance, refers to a fundamental concept that businesses and…

Q: How can we illustrate Settlement Costs?

A: A cost is a monetary value that is incurred by the company to acquire something or to produce…

Q: What are the advantages and disadvantages of target pricing versus cost-based pricing?

A: Advantages of target pricing are as follows: It help in controlling in cost It provide profit with…

Q: Explain and critically assess the general idea behind transfer pricing. Would it be beneficial for…

A: The objective of this question is to understand the concept of transfer pricing, its benefits, and…

Q: What is target pricing? Who uses it?

A: Target pricing: A pricing method which is used to identify the price at which the product will be…