A benefit of using a market-based transfer price is: a. the economic viability and profitability of each division can be evaluated individually. b. the profits of the transferring division are sacrificed for the overall good of the corporation. c. the profits of the division receiving the products are sacrificed for the overall good of the corporation. d. none of the abovee

Q: THE MAIN DIFFERENCE BETWEEN EX-ANTE AND EX-POST ECONOMIC PROFIT a. Representing the opportunity…

A: b. is called the hold-up problem

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: 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: 15) Macon Corporation has no excess capocity l the transfer-pricing nule, opportunity cost would be…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

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: An advantage of the residual income measure over the return on investment measure is: residual…

A: Residual income approach involves net income after deductions of cost of capital from operating…

Q: Which of the following statement(s) is/are false? (A) Residual income can be used to compare…

A: Neither of these is false. Explanation:Both statements are true. Residual income is a performance…

Q: In each of the cases below, assume Division X has a product that can be sold either to outside…

A: Transfer pricing is the price at which one division sells or provides goods or services to another…

Q: Based on the CAPM, how would one adjust the corporation’soverall cost of capital to establish the…

A: Investors always want minimum returns based on CAPM for investing their money in the company. It…

Q: Public goods have the following characteristics Orivaled Oexcludable Onon-excludable Olow social…

A: Different type of goods provide different economic benefit and private and public goods and to the…

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: Identify the one true statement. a. Benefit-cost analysis is recommended for a formal economic…

A: B-C Analysis is known as the Benefit-Cost Analysis which is commonly used to evaluate long-term or…

Q: The transfer price between two internal divisions will represent O an expense, cost revenue, cost…

A: Revenue for the Selling Division -The transfer price serves as the revenue or sales amount for 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: 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: What is economic surplus defined as? A) The total revenue earned by a firm B) The difference between…

A: The correct answer is: Option (B) The difference between total revenue and total costs Economic…

Q: Utility refers to the:   Question 55 options:   usefulness of a product   extent to which a…

A: Utility is important aspect for the customer.

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: The reduction in profit arising from the actions of managers being self-serving or possible conflict…

A: This reduction in profit due to self-serving actions or conflicts of interest often falls under the…

Q: In which scenario would an adjusted sales value be used to assign costs? a. If abnormal losses…

A: Joint products refer to the products which are produced simultaneously as their raw material is the…

Q: Which of the following is an economic motivation for an acquisition? Using a cash surplus. b.…

A: When there is cash surplus and there is a means to park such surplus then acquisition is one option.…

Q: The approach that requires the transfer price to be less than the market price but greater than the…

A: Standard cost is the cost that has been fixed by the company at the beginning of the period.…

Q: there no profit sharing ratio for the net income distribution board?

A: Partnership is a aggreement between two or more persons to operate a business in consideration of…