Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Transfer Pricing
The consulting division of IBM Corporation is often involved in assignments for which IBM computer equipment is sold as part of a system installation. The Computer Equipment Division is frequently a vendor of the Consulting Division in cases for which the Consulting Division purchases the equipment from the Computer Equipment Division. The Consulting Division does not view itself as a sales arm of the Computer Equipment Division bus as a strong competitor to the major consulting firms of information systems. The Consulting Divisions goal is to maximize its profit contribution to the company, not necessarily to see how much IBM equipment it can sell. If the Consulting Division is truly an autonomous investment center, it has the freedom to purchase equipment from competing vendors if the consultants believe that a competitor's products serve the needs of a client better than the comparable IBM product in a particular situation.
Required
a. In this situation, should corporate management be concerned about whether the Consulting Division sells IBM products or those of other computer companies? Should the Consulting Division be required to sell only IBM products?
b. Discuss the transfer-pricing issues that both the Computer Equipment Division manager and the Consulting Division manager should consider. If top management does not have a policy on pricing transfers between these two divisions, what alternative transfer prices should the division manager consider?
c. What is your recommendation regarding how the managers of the Consulting and Computer Equipment Divisions can work together in a way that will benefit each of them individually and the company as a whole?
Skaters Plus Company plans to sell 90,000 skateboards next quarter at a price of $36 per unit. Production costs are $14.40 per unit.
What can a firm do to reduce goal incongruence caused by using "return on investment" for performance evaluation?
What amount of the Accounts Receivable will be collected in the fourth quarter?
What is the company's plantwide overhead rate and Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y
A new, more efficient machine is available at a cost of $300,000 that will have a 5-year useful life with no salvage value.
Consider your professional experiences as well as your review of the Required and/or Optional Resources and determine what type of variances might be the most alarming to see. What type of inventory control considerations do you think are occurring..
Determine the denominators to be used in the calculations of cost per equivalent unit for materials and conversion costs.
Green Company's variable expenses are 75% of sales. At a sales level of $400,000, the company's degree of operating leverage is 8. At this sales level, fixed expenses are
Companies should focus on financial measures of quality because these are the only measures of quality that can be linked to bottom-line performance
Identify, define and discuss the with specific reference to above options - Name the qualitative factors that might influence you to choose the less
Identify the key factors that HLW should consider in its evaluation and explain what type of financial analyses HLW should prepare in order to make a complete evaluation.
Which country does the text describe as becoming the largest producer and consumer of many of the world's goods - sells a single product with a contribution margin of $12 per unit and fixed costs of $74,400 and sales for the current year of $100,000..
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd