When negotlating a transfer price, which price is most acceptable to the selling divislon if they are operating with Idle capacity? Multiple Choice the price must cover at least the variable manufacturing costs of the selling division the price must be less than the variable manufacturing costs of the selling division the price must cover at least the variable manufacturing costs of the buying division the price must cover at least the selling price to outside customers

When negotlating a transfer price, which price is most acceptable to the selling divislon if they are operating with Idle capacity? Multiple Choice the price must cover at least the variable manufacturing costs of the selling division the price must be less than the variable manufacturing costs of the selling division the price must cover at least the variable manufacturing costs of the buying division the price must cover at least the selling price to outside customers

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

In the Heckscher-Ohlin model with intermediate goods in equilibrium international supply chains will minimise cost of intermediate good inputs for final good production. True False
Which of the following statements about operating leverage is NOT true? Group of answer choices Operating leverage predicts the effect of fixed costs on operating income when sales volume changes. A higher proportion of fixed cost in a cost structure results in higher operating leverage. The higher the operating leverage, the higher the risk of loss when sales volume decreases. A higher proportion of fixed cost in a cost structure results in lower operating leverage.
A competitor of your company has shifted it cost structure from variable to fix costs, how your competitor handle cost accounting? What ate the advantages of disavantages yiur competitor may have consider before making the change? What is the rationale of making the change in cost structure? Differenciate the types of costs fixed variable step and mixed, explain how fixed costs affects the organazation profitability in situations where sales increase and decrease, summarize how increased level of fixed costs enables the organization to plan more effectively
When performing sales mix analysis, which one of the :following is true .a .The sales mix is usually assumed to change .b Producing and selling more units of the product with a higher contribution margin would likely decrease the breakeven point .C Making changes to the sales mix will likely cause no change in the breakeven point .d Normally the calculation of the breakeven point for multiproduct is much simpler than that for a single product .e Shifting the sales mix to the product with a lower contribution margin will likely increase the overall contribution margin أخل اختیاری
The cost-volume-profit analysis for a breakeven chart does not assume Group of answer choices Some costs vary inversely with volume. Production will equal sales. Costs are linear and continuous over the relevant range. Price will remain fixed.
The difference between the average customer’s willingness to pay and the total costs of a product is known as ______. When a company makes a profit, the difference between the price of the product and the cost of production is known as what? Value creation and value capture are key concepts for which parts of business? If a company innovates in a way that reduces its production costs without affecting any features of the product, would that create value? Suppose a price war was to erupt in the airline market, which causes prices for flights to decline, but affected nothing else about the industry. Would this change the value created by airlines? Suppose a price war was to erupt in the airline market, which causes prices for flights to decline, but affected nothing else about the industry. Would this change the value captured by airlines? Please solve all part and do not give solution in image format thanku
In order to determine the optimal sales mix for a company, one should evaluate the contribution margin per unit of whatever the scarce resource is True or Faise
When evaluating if a company should accept a new contract to produce more product it should: Evaluate all possible fixed cost of accepting the contract. Evaluate the propose contract using a contribution margin approach. Accept the new contract if the sales price for the product is equal to or higher than the current sale price. Accept the new contract if fixed costs will remain the same.
Which one of the following statement is not correct? O Both fixed and variable costs influence short-term decision-making. O Short-term decision-making is all about analysing those costs that will change as a result of taking a particular action. O Opportunity costs are only considered when resources are limited. O Break-even analysis is used to determine how many units of a product or a service a business has to sell to cover all its costs.
if we produce goods over the capacity, should we consider the fixed marketing cost and variable marketing cost when making the decision to accept or reject a special offer?
When performing sales mix analysis, which one of the following is true: O a. Producing and selling more units of the product with a higher contribution margin would likely decrease the breakeven point O b. Normally the calculation of the breakeven point for multiproduct is much simpler than that for a single product. O c. The sales mix is usually assumed to change. O d. Making changes to the sales mix will likely cause no change in the breakeven point O e. Shifting the sales mix to the product with a lower contribution margin will likely increase the overall contribution margin DUS PAGE NEXT PAGE F8 F9 F10 F11 F4 F5 F6 F7 F1 F2 F3 * @ 2# % & 1 2 3 6 7 W E T Y F J K A 1. C {V }BYN í M 41 * N
What is the estimated selling price of a product less any costs necessary to further process the product beyond the split-off point?