. The corporation consists of two d . Bell Division, which acquires the and assembles them into kits. . Cornish Division, which takes the poration is decentralized and the m n investment.
Q: Sheridan Corporation wishes to exchange a machine used in its operations. Sheridan has received the…
A: Journal entries are the first step in the recording process. If asset is sold at a value lower than…
Q: Yogi-Tech Ltd is a manufacturer and distributer of computer related products. The company has three…
A: An operating segment is a reportable segment if any of the below conditions are satisfied a)…
Q: Sodas Inc. and Tom’s Bottling Plant have a manufacturing franchise arrangement. This involves the…
A: Manufacturing Franchise Arrangement:- It is such a type of arrangement where a franchisor…
Q: AutoShine, Inc. who currently supplies Car Wash Products has decided to expand its operations to…
A: Preference shares are sometimes referred to as preferred stocks in certain circles. This kind of…
Q: 1. JIVision, which acquire the raw materials to manufacture the basic house components and assembles…
A: The various performance measures are used to collect, analyze and report figures of companies.
Q: Choose the correct.Which of the following does not indicate an investor company’s ability to…
A: Significant influence: One can exercise significant influence on the other, if one holds 20% or more…
Q: Fillmore Industries is a vertically integrated firm with several divisions that operate as…
A: Transfer price: This is the price charged by one division of an entity to another division…
Q: Which of the following does not indicate an investor company’s ability to significantly influence an…
A:
Q: Geddes Corporation is a medium- sized manufacturing company with two divisions and three…
A: (a) Costs are allocated on the assumption that the last goods purchased are the first to be…
Q: The casino and the hotel have a joint marketing arrangement by which the hotel gives coupons…
A: solution given Casino hotel Revenues 34,000,000 25,000,000 Costs 17,000,000…
Q: Many companies transfer inventories from one subsidiary to another. Often the companies have…
A: Inter company Transactions are the events happening between two or more subsidiaries of a same…
Q: he following does not indicate an investor company's ability to significance an investee? A.…
A: The investment in subsidiiary or another company is said to be accounted for using the equity…
Q: Charging Corporation and Sparking Electrical Company are competitors in the business of electrical…
A: a) Calculation of Offered Amount Offered amount = Market Capitalization x (1 + takeover premium) =…
Q: In a decentralized company in which the divisions are organized as investment centers, how could a…
A: Decentralised operations: in the company where the power to take decisions is delegated to the…
Q: Clonal, Inc., a biotechnology company, developed and patented a diagnostic product called Trouver.…
A: Requirement 1: The company must report the whole cost of research equipment used for the product…
Q: Holyfield Corporation wishes to exchange a machine used in its operations. Holyfield has received…
A: Journal entries are prepared to record the financial and non financial transaction of the business.
Q: Waterways Corporation is a private corporation formed for the purpose of providing the products and…
A: The income statement is prepared by the business entity so as to determine how much amount of gross…
Q: Large corporations often have many product-based divisions that cater to different markets. Why each…
A: It is important for large corporations to consider calculating the cost of capital for individual…
Q: MiniTek manufactures private-label small electronic products, such as alarm clocks, calculators,…
A: Making the decision to manufacture a product internally versus buying it from a third-party provider…
Q: 1. Explain how Clonal should report the equipment purchased for Trouver on its income statements and…
A:
Q: I.-The common examples of businesses where the production of joint products can be found include…
A: The joint production is the production of two or more products while production of one particular…
Q: Uniroyal Technology Corporation (UTC), with corporate offices in Sarasota, Florida, is organized…
A: Financial Statement: It is the record of all financial activities of a firm. The firms prepare…
Q: Lansing Electronics Inc. manufactures a variety of printers, scanners, and fax machines in itstwo…
A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve first three…
Q: Select Manufacturing Co. produces three joint products and one organic waste byproduct. Assuming the…
A:
Q: In 1998, the company went public and its initial public offering was very successful. The stock…
A: Given information: Face value of bond is $1,000 Coupon rate is 10% Number of years to maturity is 25…
Q: T J International was founded in 1969 as Trus Joist International. The firm, a manufacturer of…
A:
Q: Select Manufacturing Co. produces three joint products and one organic waste byproduct. Assuming the…
A:
Q: Large corporations often have many product-based divisions that cater to different markets. Give two…
A: The cost of capital of a corporation is the cost of the funds of the corporation, that is the cost…
Q: Holyfield Corporation wishes to exchange a machine used in its operations. Holyfield has received…
A: 1. prepare the journal entries to record the exchange on the books of each company Workings:
Q: Harvey Corporation produces several joint products fromcommon materials and shared production…
A:
Q: Large, diversified companies often will sell products/components from one division to another…
A: Explanation: 1. The Cost of manufacturing T24 part for transfer will be equal to = Direct Material…
Q: “Once a company allocates corporate costs to divisions, these costs should not be reallocated to the…
A: Cost Allocation:The process of assigning the cost to the cost object is cost allocation. The cost…
Q: When the Bell System was broken up, the old AT&T was split into a new AT&T and seven regional…
A: Capital structure refers to the securities or debt included in the total capital of the firm.…
Q: If a company constructs a laboratory building to be used as a research and development facility, the…
A: Depreciation is a reduction in the value of asset over a period of time. If a company construct a…
Q: nies agreed to form an joint operation to design specialised tools, which is called SmartTools…
A: In this question, 2 companies i.e. Stafford Ltd and Tutbury Ltd are forming a joint operation named…
Q: The Cook Company operates a simple chemical process to convert a single material into three separate…
A: Joint cost is the manufacturing cost incurred on a joint production process that takes common inputs…
Q: Perth Corporation has two operating divisions, a casino and a hotel. The two divisions meet the…
A: Casino Hotel ($000) ($000) Revenue: Outside revenue $34,000 $27,000 Transfer price…
Q: Which of the following statements are true about globaliza-tion methods? a. International licensing…
A:
Q: JCL Inc. is a major chip manufacturing firm that sells its products to computer manufacturers like…
A: Working note: Capacity of Depositing (Flow rate)=Batch sizeSetup+Batch size×Time per…
Q: Which of the following is NOT part of a firm’s Total Cost of Ownership for an information system?…
A: The cost of ownership of an information system includes personnel costs, Installation costs for…
Q: The Oceanic Corporation, a Chesapeake, VA based company, was established in 1994. Glenn Rodgers III…
A: YTM is that single rate which makes the worth of future cash flows and coupon amount equal to its…
Q: Port Ltd. has 2 divisions. Division PA, which is an automobile part manufacturing division is…
A: The company's motive will be to increase the profitability. The profitability of the company can be…
Q: The Blair Company’s three assembly plants are located in California, Georgia, and New Jersey.…
A: Decision making is defined as the process of making or selecting the best decision among the…
Q: An entity is developing a multi-unit residential complex. A customer enters into a binding sales…
A: The revenue recognition model provides guidance regarding the timing, nature, and extent of the…
Potential pitfalls encountered in the design of performance indicators and measurement systems.
Step by step
Solved in 2 steps
Below are events, for each event, identify the type of risk the event entails, classify your identified risk as either systematic or unsystematic risk;
- Public policy
- Boards’ risk blindness: risk
- Information glass ceiling
- Managerial inefficiency and ineffectiveness
- Risk assessment strategy
Not satisfied at all, please above is my question
- D Corporation is one of the major producers of prefabricated houses in the home buildingindustry. The corporation consists of two divisions:1. Bell Division, which acquires the raw materials to manufacture the basic house components and assembles them into kits.2. Cornish Division, which takes the kits and constructs the homes for final home buyers.The corporation is decentralized and the management of each division is measured by its income and return on investment. Bell Division assembles seven separate house kits using raw materials purchased at theprevailing market prices. The seven kits are sold to Cornish for prices ranging from US$45,000 to US$98,000. The prices are set by the corporate management of D Corporation using prices paid by Cornish when it buys comparable units from outside sources. The smaller kits with the lower prices have become a larger portion of the units sold because the final house buyer is faced with prices that are increasing more rapidly than personal…Ludmilla Construction Company is composed of two divisions: (1) Home Construction and (2) Commercial Construction. The Home Construction Division is in the process of building 12 houses and the Commercial Construction Division is working on three projects.Required Identify each cost as being a direct or indirect cost, assuming the cost objects are the individual products (houses or projects). Identify each cost as being a direct or indirect cost, assuming the cost objects are the two divisions. Identify each cost as being a direct or indirect cost, assuming the cost object is Ludmilla Construction Company as a whole.Code Incorporated has three divisions (Entertainment, Plastics, and Video Card), each of which is considered an investment center for performance evaluation purposes. The Entertainment Division manufactures video arcade equipment using products produced by the other two divisions, as follows: 1. The Entertainment Division purchases plastic components from the Plastics Division that are considered unique (i.e., they are made exclusively for the Entertainment Division). In addition, the Plastics Division makes less-complex plastic components that it sells externally, to other producers. 2. The Entertainment Division purchases, for each unit it produces, a video card from Code's Video Card Division, which also sells this video card externally (to other producers). The per-unit manufacturing costs associated with each of the above two items, as incurred by the Plastic Components Division and the Video Card Division, respectively, are: Plastic Components Video Cards Direct…
- Sembotix Company has several divisions including a Semiconductor Division that sells semiconductors to both internal and external customers. The company’s X-ray Division uses semiconductors as a component in its final product and is evaluating whether to purchase them from the Semiconductor Division or from an external supplier. The market price for semiconductors is $100 per 100 semiconductors. Dave Bryant is the controller of the X-ray Division, and Howard Hillman is the controller of the Semiconductor Division. The following conversation took place between Dave and Howard: Dave: I hear you are having problems selling semiconductors out of your division. Maybe I can help. Howard: You’ve got that right. We’re producing and selling at about 90% of our capacity to outsiders. Last year, we were selling 100% of capacity. Would it be possible for your division to pick up some of our excess capacity? After all, we are part of the same company. Dave: What kind of price could you give…Sembotix Company has several divisions including a Semiconductor Division that sells semiconductors to both internal and external customers. The company's X-ray Division uses semiconductors as a component in its final product and is evaluating whether to purchase them from the Semiconductor Division or from an external supplier. The market price for semiconductors is $100 per 100 semiconductors. Dave Bryant is the controller of the X-ray Division, and Howard Hillman is the controller of the Semiconductor Division. The following conversation took place between Dave and Howard: Dave: I hear you are having problems selling semiconductors out of your division. Maybe I can help. Howard: You've got that right. We're producing and selling at about 90% of our capacity to outsiders. Last year we were selling 100% of capacity. Would it be possible for your division to pick up some of the excess capacity? After all, we are part of the same company. Dave: What kind of price can you give me?…The Harris Company is decentralized, and divisions are considered investment centers. Harris has one division that manufactures oak dining room chairs with upholstered seat cushions. The Chair Division cuts, assembles, and finishes the oak chairs and then purchases and attaches the seat cushions. requirements 2. Assume the Chair Division purchases the 800 cushions needed from the Cushion Division at its current sales price. What is the total contribution margin for each division and the company? 3. Assume the Chair Division purchases the 800 cushions needed from the Cushion Division at its current variable cost. What is the total contribution margin for each division and the company? 5. Assume the Cushion Division has capacity of 1,600 cushions per quarter and can continue to supply its outside customers with 800 cushions per quarter and also supply the Chair Division with 800 cushions per quarter. What transfer price should Harris Company set? Explain your reasoning. Using the…
- Speed Racer in Victoria makes bicycles for people of all ages. The frames division makes and paints the frames and supplies them to the assembly division where the bicycles are assembled. Speed Racer is a successful and profitable corporation that attributes much of its success to its decentralized operating style. Each division manager is compensated on the basis of division operating income. The assembly division currently acquires all its frames from the frames division. The assembly division manager could purchase similar frames in the market for $480. The frames division is currently operating at 80% of its capacity of 4,000 frames (units) and has the following details: Voltage Regulator Direct materials ($150 per unit x 320 units) $480,000 Direct manufacturing labour ($60 per unit x 3,200 units) 192,000 Variable manufacturing overhead costs ($30 per unit × 3,200 units) 96,000 Fixed manufacturing overhead costs $624,000 All the frames…Speed Racer in Victoria makes bicycles for people of all ages. The frames division makes and paints the frames and supplies them to the assembly division where the bicycles are assembled. Speed Racer is a successful and profitable corporation that attributes much of its success to its decentralized operating style. Each division manager is compensated on the basis of division operating income. The assembly division currently acquires all its frames from the frames division. The assembly division manager could purchase similar frames in the market for $480. The frames division is currently operating at 80% of its capacity of 4,000 frames (units) and has the following details: Voltage Regulator Direct materials ($150 per unit x 320 units) $480,000 Direct manufacturing labour ($60 per unit x 3,200 units) 192,000 Variable manufacturing overhead costs ($30 per unit × 3,200 units) 96,000 Fixed manufacturing overhead costs $624,000 All the frames division’s…Speed Racer in Victoria makes bicycles for people of all ages. The frames division makes and paints the frames and supplies them to the assembly division where the bicycles are assembled. Speed Racer is a successful and profitable corporation that attributes much of its success to its decentralized operating style. Each division manager is compensated on the basis of division operating income. The assembly division currently acquires all its frames from the frames division. The assembly division manager could purchase similar frames in the market for $480. The frames division is currently operating at 80% of its capacity of 4,000 frames (units) and has the following details: Voltage Regulator Direct materials ($150 per unit x 320 units) $480,000 Direct manufacturing labour ($60 per unit x 3,200 units) 192,000 Variable manufacturing overhead costs ($30 per unit × 3,200 units) 96,000 Fixed manufacturing overhead costs $624,000 All the frames division’s…
- Speed Racer in Victoria makes bicycles for people of all ages. The frames division makes and paints the frames and supplies them to the assembly division where the bicycles are assembled. Speed Racer is a successful and profitable corporation that attributes much of its success to its decentralized operating style. Each division manager is compensated on the basis of division operating income. The assembly division currently acquires all its frames from the frames division. The assembly division manager could purchase similar frames in the market for $480. The frames division is currently operating at 80% of its capacity of 4,000 frames (units) and has the following details: Voltage Regulator Direct materials ($150 per unit x 320 units) $480,000 Direct manufacturing labour ($60 per unit x 3,200 units) 192,000 Variable manufacturing overhead costs ($30 per unit × 3,200 units) 96,000 Fixed manufacturing overhead costs $624,000 All the frames division’s…Speed Racer in Victoria makes bicycles for people of all ages. The frames division makes and paints the frames and supplies them to the assembly division where the bicycles are assembled. Speed Racer is a successful and profitable corporation that attributes much of its success to its decentralized operating style. Each division manager is compensated on the basis of division operating income. The assembly division currently acquires all its frames from the frames division. The assembly division manager could purchase similar frames in the market for $480. The frames division is currently operating at 80% of its capacity of 4,000 frames (units) and has the following details: Voltage Regulator Direct materials ($150 per unit x 320 units) $480,000 Direct manufacturing labour ($60 per unit x 3,200 units) 192,000 Variable manufacturing overhead costs ($30 per unit × 3,200 units) 96,000 Fixed manufacturing overhead costs $624,000 All the frames…The Josh - Lester Corporation, manufacturer of tractors and other heavy farm equipment, is organized along decentralized product lines, with each manufacturing division operating as a separate profit center. Each division manager has been delegated full authority on all decisions involving the sale of that division's output both to outsiders and to other divisions of Josh - Lester. i(Click the icon to view the information on the divisions.) Begin by calculating the contribution margin from selling units to other customers. Then calculate the net benefit (cost) to the company as a whole. (Enter a net cost using parentheses or a minus sign.) Less: The company already completed an analysis to determine if it was in its best interest to have division C purchase 1,300 units from an external supplier for $125 per unit, assuming that there are no alternative uses for internal facilities of division A. (Click the icon to view the results of the analysis.) Now, assume that division A can sell…