The approach that requires the transfer price to be less than the market price but greater than the supplying division's variable costs per unit is called the _____ approach. a.negotiated cost

Q: When management believes that there is a direct link between the joint costs incurred and the value…

A: sales value at splitoff method is used when there is direct link between the joint costs incurred…

Q: Explains the effect on profit of using variable (marginal) and absorption costing.

A: The income statement can be prepared using various methods as absorption costing and variable…

Q: Why is absorption costing the method allowable for GAAP yet managers prefer variable costing

A: In variable costing only variable costs are included in the product cost. Fixed costs re considered…

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: Which costs assignment method would you use to assign prime costs to a product: a.direct tracing…

A: Prime cost: prime cost is total of direct cost that is direct material, direct labor and direct…

Q: Determining the transfer price as the price at which the product or service transferred could be…

A: Transfer pricing relates to the procedure used to establish the price of products or services traded…

Q: Within a relevant range, costs that increase in direct proportion to volume are:   Question 9…

A: Variable costs are proportional to the level of output within a relevant range. On the other hand,…

Q: When will NOI under the variable costing method show higher income than under the absorption costing

A: Net Operating Income: It is a calculation used to assess the profitability of the business.

Q: In making a short-term special decision, which of the following is MOST important? a. Use a…

A: Solution Concept The decision that is to be taken differs from one another on the basis of the time…

Q: Malmo, Inc. manufactures travel locks. The budgeted selling price is $12 per lock, the variable cost…

A: Flexible budget means expected income and expenditure in future to find out budgeted income.…

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: 3. The sales level at which operating income is zero. Drop in sales a company can absorb without…

A: Break even analysis involves determination of sales level at which the firm's total revenue equals…

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: Which of the following transfer price approaches is used when the transfer price is set at the…

A: Transfer Price  : Price at which related parties transact with each other is known as transfer…

Q: Question 1: Which statement about budgets is incorrect? Answer: A. B. C. D. O They determine the…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

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: Absorption coating requires accounting estimates and allocations to value inventory. Transfer…

A: Absorption costing is a traditional method of accounting for the cost of producing goods or…

Q: A cost - based transfer price considers the cost of producing the goods when determining the price.…

A: At the time of determining the prices of the goods, the cost of goods-producing is required to be…