Why is determining fair transfer price important to managers

Assignment Help Cost Accounting
Reference no: EM13888742

1. What is a transfer price? Why is determining a fair transfer price important to division managers?

2. When setting a transfer price, what objective(s) should the company have in mind?

3. What are the three approaches for determining trans- fer prices?

Reference no: EM13888742

Questions Cloud

In what circumstances will negotiated transfer price be used : When determining the minimum transfer price, what is meant by the "opportunity cost"? In what circumstances will a negotiated transfer price be used instead of a market-based price?
Strong authentication and authorization : You have been asked to design a secure system that requires strong authentication and authorization. The system must be designed so that communications between parts of the system cannot be intercepted and read by an attacker.
Example of a remote procedure call : Using an example of a remote procedure call, explain how middleware coordinates the interaction of computers in a distributed system.
Differences between scaling up and scaling out : What do you understand by ‘scalability'? Discuss the differences between ‘scaling up' and ‘scaling out' and explain when these different approaches to scalability may be used.
Why is determining fair transfer price important to managers : What is a transfer price? Why is determining a fair transfer price important to division managers? When setting a transfer price, what objective(s) should the company have in mind?
Various stages of the product life cycle : 1.Listed below are three different products in various stages of the product life cycle.
What is meant by compensation action : Explain what is meant by a ‘compensation action' and, using an example, show why these actions may have to be included in workflows.
In what circumstances is time-and-material pricing often use : In what circumstances is time-and-material pricing most often used? What is the material loading charge? How is it expressed?
Determining the possible process architecture : If a periodic process in the onboard train protection system is used to collect data from the trackside transmitter, how often must it be scheduled to ensure that the system is guaranteed to collect information from the transmitter? Explain how yo..

Reviews

Write a Review

Cost Accounting Questions & Answers

  Calculate the present value of the cca tax shield

Determine the appropriate discount rate to evaluate the project and calculate the present value of the CCA tax shield adjusted for the salvage value of the plant.

  Identify the entities that were mentioned in the scenario

Identify the entities that were mentioned in the scenario and explain what happened to the cash accounts of each entity that you identify.

  Tax law complexity - tax law is determined by congress not

tax law complexity - tax law is determined by congress not the irs. the irs only enforces the law congress makes.

  Break-even point of using automated equipment

With an annual production rate of 5,000 units, how long will it take to reach break-even point of using automated equipment?

  Discuss why cash budgeting is particularly important

Discuss why cash budgeting is particularly important for a rapidly expanding company such as A&A Corporation.

  Determine the inventory on june and the cost of goods sold

Determine the inventory on June 30, 2014, and the cost of goods sold for the three-month period, using the last-in, first-out method and the periodic inventory system.

  What amount should the gain from the sale of the building

The prevailing rate of interest for a note of this type on January 1, 2014, was9%. At what amount should the gain from the sale of the building be reported?

  Record all adjusting entries required

Physical count of items showed $14,200 of supplies were on hand

  Crossover point j marcel enterprises has gathered projected

crossover point. j. marcel enterprises has gathered projected cash flows for two projects. at what interest rate could

  Differences between the way gaap and ifrs operate

Currently, the United States is working towards a convergence with International Financial Reporting Standards (IFRS). There are certain similarities and differences between the way GAAP and IFRS operate.

  Determine the amount of cash received from customers

Sales reported on the income statements were $450,000. The accounts receivable balance increased $47,000 over the year. Determine the amount of cash received from customers.

  Jackson company is considering two capital investment

jackson company is considering two capital investment proposals. estimates regarding each project are given below

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