User Account

All Pages

Demonstrate what transfer price would recommend

Assignment Help Managerial Accounting
Reference no: EM132556143

Spark Ltd has two divisions, assembly and electrical. The assembly division transfers partially completed components to the electrical division at a predetermined transfer price. The assembly division's standard variable production cost per unit is $550. This division has spare capacity, and it could sell all its components to outside buyers at $680 per unit in a perfectly competitive market.

Question a) Determine a transfer price using the general rule.

Question b) How would the transfer price change if the assembly division had no spare capacity?

Question c) What transfer price would you recommend if there was no outside market for the transferred component and the assembly division had spare capacity?

Question d) Explain how negotiation between the supplying and buying units may be used to set transfer prices. How does this relate to the general transfer pricing rule?

Reference no: EM132556143

Questions Cloud

What is the causative agent of malaria : What is the causative agent of malaria? How does sickle cell provide resistance against malaria?
What is upper respiratory infection : There is one upper respiratory system infection that can be life-threatening and has killed people in the past before a vaccine
Calculate the operating income using variable costing : Calculate the operating income using variable costing assuming that your net sales revenue is 100 units at 500 per unit, variable costing is 100 units
Conduct additional research on the use of triclosan : Conduct additional research on the use of triclosan and other chemical agents in antimicrobial products today.
Demonstrate what transfer price would recommend : Compute What transfer price would you recommend if there was no outside market for the transferred component and the assembly division had spare capacity?
What are some of the beneficial protozoa : What are some of the beneficial protozoa?
Contrast and compare prokaryotes with eukaryotes : Contrast and compare Prokaryotes with Eukaryotes . Be sure to include discussion about differences in ribosomes
Growth for corynebacterium diphtheria : Name two methods that growth for corynebacterium diphtheria
How to make schedule of cost of goods manufactured for year : How to Make schedule of cost of goods manufactured for the year. Assume all raw materials are used in production as direct materials.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd