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What are the Objectives of Intra company transfer pricing
The objectives of Intra company transfer pricing are:
1) Evolution of performance and efficiency of each division.
2) Assessment of profitability of each division.
3) Decision marking whether to manufacture of buy sell as it is or to process it further, for each division.
4) Maintenance of secrecy of the cost of production of each division.
5)Encourage each division to each profit on competitive basis, maximize them and thereby accumulate greater profit to the company as a whole.
TEMPORARY CLOSURE OF FACTORY OR DEPARTMENT Here there is a similar situation to that of discontinuance of a product such as Model N40. A factory which is expected to earn some
No further banks were the sole source of funds for working capital requires of the business sector. At current more finance options are obtainable to a Finance Manager to allow smo
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Debtors turnover ratio( or receivables turnover ratio) Meaning: this ratio establishes a relation ship between net credit sales and averages trade debtors. Objective
Under this method, approximated profit is calculated depends on transactions of the ensuing period. Afterward, decrease or increase in working capital is determined adjusting the e
WHY VARIANCES IS INVESTIGATED UNDER STANDARD COSTING
2x2+8x-m3 = 0
Product life cycle costing It is an approach used to give a long term picture of product line profitability feedback on the effectiveness of life cycle planning and cost data t
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Disadvantages of zero base budgeting 1) It is not suitable for all the activities in an organization 2) It has limited application in a profit making organization. In this c
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