The minimum transfer price for a selling division with excess capacity to accommodate the transfer of produced units to the buying division is usually based on the

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: Prepare an analysis of the sales quantity and unit price factors  did the price decrease generate…

A: Sales quantity factor = (Actual Quantity - planned Quantity) * Planned Sales Price Sales quantity…

Q: What is a segment of an organization? Give a few examples of segments of Walmart Corporation. What…

A: Business or organizations are usually divided into various departments, each with its own specific…

Q: Calculation of profit change from changes in sales price, sales volume, variable costs, or fixed…

A: This question deals with profit change from changes in sales price, sales volume, variable costs, or…

Q: Fixed costs depend on the: Select one: a. amount of resources acquired b. amount of resources used…

A: Since you have posted multiple questions, we will do the first one for you. Please post the other…

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: The contribution income statement would require a firm to: Restructure its accounting system…

A: The objective of the question is to identify the requirements for a firm to prepare a contribution…

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: Which one of the following is defined, at any given sales volume, as the ratio of the total…

A: Contribution margin is Sales less variable expenses at any given volume. Operating profit is…

Q: Indirect and common costs often make up a significant portion of the cost of a product. All of the…

A: Indirect costs are expenses that support the overall operation of a business and must be allocated…

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: Product costing is the process of:  A. accumulating the costs of a production process. B. assigning…

A: Cost accounting  is a form under the various available systems of accounting including financial…

Q: t is known that a new fee will increase if the order made by the customer increases. Based on this…

A: Under ABC system, the costs are divided on the grounds of various types of cost drivers utilized.…

Q: Based on below, Activity-Based Costing and Analysis Cost Behavior and Cost-Volume-Profit Analysis…

A: Under cost-profit volume analysis, the break-even point is that level of production where the…

Q: Which two categories of costs influence the choice of how manystorage facilities a firm might have…

A: The management of the company makes a decision that benefits the company most. when an investment or…

Q: Explain how increasing production can increase gross profit when using absorption costing.

A: Absorption costing: Absorption costing is compulsory under Generally Accepted Accounting Principles…

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: 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: 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: 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…

Q: How would you define fixed and variable product costs? How are these costs used in determining the…

A: Cost of production is the total cost involved in producing a particular volume of products. These…

Q: Variable costing income will be greater than absorption costing income when:   a. Sales is greater…

A: If  under variable costing, unit sold are less than units produced, the fixed manufacturing overhead…

Q: Profitability changes may be simply calculated by using what kind of tool: sales…

A: The net profits are calculated as difference between sales and total expenses.