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Q. Explain Activity based management?
Activity based management (ABM) is about satisfying customers whilst making fewer demands on internal resources. The aim is that once cost drivers are created, organisations can aim to reduce cost, by creating models for more effective planning and control. ABM can lead towards the elimination or reduction of non-value added activities e.g. customer returns, complaints and obsolesce of stock. By eliminating activities which don't add value to customers, an organisation may still satisfy customers and at the same time make fewer demands on organisations resources.
Q. What is Transfer Pricing? A transfer price is a price charged for goods or services provided internally between divisions or departments in the same group or company. Tran
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Q. Explain about Residual income? Residual income is profit earned by a division less a "notional interest charge" for investment of finance within it.
Q. International aspects to transfer pricing? The following issues can influence international transfer pricing decisions. Exchange rates e.g. fluctuations in global cur
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