1. “Transfer pricing is confined to profit centres”. Do you agree? Why?

Q: A weakness associated with cost-based pricing methods is that they do not allow for primary…

A: The cost based  pricing method is a method of pricing which is used to price the commodity face on…

Q: argin, Operating Leverage, How to accept or reject “one time only special offers”, Irrelevant costs.

A: 1. Safety Margin: Marginal safety is an amount by which the actual sales exceed the break-even…

Q: What is the major benefit of Breakeven Analysis? AB A. B. C. OP D. It allows you to know how much…

A: Break-even analysis in economics, business, and cost accounting refers to the point at which total…

Q: In a transfer pricing decision, which of the following factors should be considered?    Both A and B…

A: Transfer pricing refers to the pricing strategy and decisions made within transnational companies…

Q: incremental analysis, Group of answer choices costs are not relevant if they change between…

A: In carrying out the incremental analysis only relevant costs are to be considered in the decision…

Q: Explain the principal-agency problem. Can you propose one potential solution for this problem to…

A: The Principal-agency problem is one of the most common problems in modern businesses. It refers to…

Q: Price accuracy and right product offering are important aspect of an efficient order-to-cash (OTC).…

A: Order to Cash (O2C) refers to a business process which involves the whole procedure of order…

Q: Many organisations use transfer pricing when transferring products between different divisions of…

A: Transfer pricing is the process of determining the price at which goods or services are exchanged…

Q: Using the concept of substitution and income effect, explain why means-tested transfer programs…

A: The income effect  is basically the shift in consumer consumption of items as a result of  income…

Q: Transfer prices can be based on any of the following methods except   a)variable cost…

A: Transfer prices can be based on any of the following methods except B) replacement cost

Q: Give two reasons why transfer pricing's dual-pricing scheme isn't frequently implemented.

A: This question explains about the transfer pricing's dual-pricing scheme is frequently implemented.

Q: In target​ costing, prices determine costs rather than vice​ versa." Explain.       Question content…

A: Target costing involves the calculation of an allowable product cost to earn a predetermined amount…

Q: Which of the following statements is true about agency efficiency?   a.  The costs from vertical…

A: The correct answer for the above mentioned question is given in the following steps for your…

Q: What do you mean when you say "fixed costs"? What's the point? Is it possible to have a combined…

A: Introduction: Costs are the costs that a company incurs when it is in operation. It includes the…

Q: Explain with examples these methods of transfer pricing Comparable Uncontrolled Price Method •Cost…

A: Comparable Uncontrolled Price (CUP) Method: The Comparable Uncontrolled Price (CUP) Method is a…

Q: Why is profitability analysis necessary, with a particular emphasis on return on investment? When…

A: Profitability is a phrase that relates to the metric used to quantify earnings. Profitability…

Q: tiveness analysis (CEA) differs from cost-benefit (B/C) analysis in that: Select one: a. CEA is more…

A: Cost effective analysis : A cost-effectiveness analysis looks at both the expenditures as well as…

Q: Describe three limitations of the economic, profitmaximizing model of pricing.

A: Profit maximizing price: The price for which the relative quantity is identified by the intersection…

Q: Which of the following is true of hybrid transfer prices? A. The cost used in hybrid transfer prices…

A: Transfer price refers to the price at which related parties sell and purchase the goods. These…

Q: Analyze the following statement: When purchasing power parity really holds, comparative advantage…

A: An exchange rate is the price of one currency against another. Exchange rates are either fixed or…

Q: Given the weaknesses of cost-based pricing, why wouldany company use this method?

A: Cost-based pricing means setting prices based on the cost of goods and services.  The major…

Q: Why can cost benefit analysis be difficult to carry out?

A: Introduction: Cost benefit analysis can be defined as a process which is undertaken by an…

Q: to compute the transfer price. At what amount should Ajax Division charge Axion 5. Will the transfer…

A: This question deals with the transfer pricing concept. Transfer pricing applies when one unit or the…

Q: This transfer prices basis is considered to be the most inferior one a. variable cost transfer pice…

A: The concept market transfer price is more associated with transfer price in method that sells the…

Q: Discuss the implications of the COVID-19 pandemic for transfer pricing arrangements.

A: Transfer Pricing: The goods or services transferred between groups of companies is known as transfer…

Q: What is the difference between purchase requisition and purchase order

A: Note: for 1st question there's missing information so I'm solving part 2 only. 2.) Purchase…

Q: The profit maximizing condition for a purely competitive firm is when. Price elasticity of demand is…

A: The correct answer for the above mentioned question is given in the following steps for your…

Q: Which of the following assumptions of the CVP graph is not true? Multiple Choice Costs are linear.…

A: CVP stands forc cost volume price it is a way to find out that how changes in variable and fixed…

Q: Explain one advantage and one disadvantage of the following transfer pricing methods: Cost Market…

A: first let us understand each of these methods briefly: Cost Method - Under this method goods are…

Q: Monopolists sometimes practice price discrimination to O a. get rid of surplus product. O b,…

A: Correct answer:Option d:Increase profit

Q: Required information [The following information applies to the questions displayed below.] In each…

A: The acceptable transfer price between the transferor and transferee division is the one where the…

Q: B. In deciding a transfer pricing method, advise management on: i. negotiated transfer pricing ii.…

A: Transfer pricing is the price which is to be calculated if there is any transaction between related…

Q: Select Among the choices, this transfer prices basis is considered as the most inferior one: a.…

A: Two or more departments of a company or interrelated companies or enterprises may transfer their…

Q: In the Heckscher-Ohlin model with intermediate goods in equilibrium international supply chains will…

A: Answer is True We  have an Explanation for this Answer The Heckscher-Ohlin theorem implies that if…