All of the following are correct statements about transfers

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Reference no: EM13580122

Question 1: The time component under time-and-material pricing includes a

loading charge.

portion of the materials clerk's wages.

profit margin.

charge for receiving, handling, and storing materials.

Question 2: All of the following are correct statements about transfers between divisions located in countries with different tax rates except that

many companies prefer to report more income in countries with low tax rates.

a decreasing number of transfers are between divisions located in different countries.

companies must pay income tax in the country where income is generated.

differences in tax rates across countries complicate the determination of the appropriate transfer price.

Question 3: All of the following are correct statements about the target price except it

is determined after the company has identified its market and does market research.

is determined after the company sets its desired profit amount.

is used to determine a product's target cost.

is the price the company believes would place it in the optimal position for its target audience.

Question 4: Lock Inc. has collected the following data concerning one of its products:

Unit sales price	$145
Total sales	15,000 units
Unit cost	$115
Total investment	$1,800,000

The ROI percentage is

20%

35%

30%

25%

Reference no: EM13580122

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