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Question 1: What transfer price would you recommend if there was no outside market for the transferred component and the assembly division had spare capacity?
Question 2: 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?
ACCT 202 Principles of Managerial Accounting - Who provides assurance to external users about the reliability of a company's financial statements
If a manager's bonus is tied to operating income, then decreasing inventory levels by producing less compared to last year would result in
List and describe four potential problems with a "traditional" overhead allocation system and list and describe four "red flags" that may indicate you should consider revising your overhead allocation system.
How can non-financial performance measures enhance an organisation's financial performance measures?describe the causes of the variance.
Explain any opportunity, sunk, out-of-pocket, and/or relevant costs that figured in Rosley's decision. How did Rosley compute the $400 per month savings?
Identify four (4) issues (accounting or otherwise) in the above case that may have an impact on the planning of the audit of BHP for the year ending 30th June 2012.
Simon Company's year end balance sheets follow. Express the balance sheets in common size percents. Round amounts to the nearest one tenth of a percent.
What is the approximate inventory on February 10, 2012 - Presented below is information compiled up to the date of the fire.
Compute the amount of overhead cost allocated to each product and the profitability of each product using the activity based costing approach.
Prepare the necessary general journal entry for June 16, purchased merchandise having a price of $6,000 from the Shelby Manufacturing Co
Calculate the equivalent annual costs for selling the new machine and for selling the old machine. (Do not round intermediate calculations.)
H & R Block is a service company that prepares tax returns; Borders is a retail company that sells books and CDs; Indian Motorcycle Corporation is a manufacturing company that makes motorcycles.
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