Unprofitable division sold and immediately profitable

Assignment Help Business Management
Reference no: EM1356532

Unprofitable division sold and immediately profitable: why?

A major manufacturer decided to put one of its divisions up for sale because managerial accounting information showed the components produced by this division is losing money. A group of employees in the division purchased it. Under the new ownership, the division immediately became profitable.

A. Why do you think the division was profitable immediately under the new ownership?

B. What kind of cost allocation method may have caused the sale of a profitable division, and can you suggest a better method? Explain why?

Reference no: EM1356532

Questions Cloud

Arantxa corporation stock transactions : Arantxa Corporation has outstanding 20,000 shares of $5 par value common stock. Prepare Arantxa's journal entries to record these transaction using the cost method.
Explain the five phases of a project : Determine why this project might be implemented and explain the five phases of a project
Cash and receivables journal entries : Salen Company finances some of its current operations by assigning accounts receivable to a finance company. On July 1, 2012, it assigned, under guarantee, specific accounts amounting to $150,000.
Explain the case had the best legal argument : Summary of the ruling in the case and Which party in the case had the best legal argument and What were the pros and cons of each side's argument
Unprofitable division sold and immediately profitable : Explain what kind of cost allocation method may have caused the sale of a profitable division, and can you suggest a better method? Explain why?
Determine the present value of investment : I own a $1,000 portfolio which is invested in stock A and stock B plus a risk-free asset. $400 is invested in stock A. Stock A has a beta of 1.3 and stock B has a beta of .7,
Write a temperature conversion program usin constructor : Write a temperature conversion program. The GUI and event handling setup should be done in the constructor of the class that implements the GUI.
Determine the pressure that each ski exerts on the snow : The depth of water behind the Hoover Dam in Nevada is 220 m. What is the water pressure at base of this dam? (Neglect the pressure due to the atmosphere.)
Explain what is the organizational culture : Organizational structure and control - What is the organizational structure and control in place in your organization and culture - What is the organizational culture

Reviews

Write a Review

Business Management Questions & Answers

  Leading and working with different generations

This brief solution discusses leading and work with different generations. It discusses the values and motivation of each of the four generations in the workplace at this time.

  Advantages and disadvantages salary administration strategy

Discuss the advantages and disadvantages of your choice resulting in your recommendation of whether this type is suitable for retaining employees in the Company or environment you chose.

  Addresses also includes the elements

Qualitative, Quantitative, also Mixed Methods Approaches, write an Introduction that addresses also includes the elements suggested by this week's Resources of learning.

  Artifacts to define the culture of the organization

Describe the artifacts you find or recall that define the culture of the organization.

  Determining ethics and budget

Since the Enron scandal, Sarbanes Oxley has needed controls and sign off of financial statements by CEO. This has codified in law what was expected of management. There is constant pressure to deliver the goods and report financial results in line..

  Combat inflation when the economy is bad

Discuss what the Federal Reserve Board do to combat inflation when the economy is bad

  How does governance play a part in developing trust

Explain how does governance play a part in developing trust and what approach discussed either in the lecture or in the text enhances a company's ethical standing?

  Define work teams and how used around the office to complete

Explain how you use team work around the office to complete tasks with your co-workers. Please support your answer with examples from the sources and the web.

  Improving internal operations or leadership

What is the role of leadership in creating, managing, and sustaining innovation in credit card company call center, such as Visa?

  Discuss the concept of organizational behavior

Describe the extent to which communication omission, distortion, and overload take place in your organization and why does this happen

  Show the strategy implementation for an organization

What are some of the structural, leadership, and cultural considerations that need to be included in the strategy implementation for an organization?

  Hayek''s leadership of smh

case, like all cases in this course, is used to analyze issues of leadership rather than to solve a problem and SWOT analysis is not useful here.

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!

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