Which is the best description of a dual transfer price?   A)  The receiving division is charged the market value of the item transferred while the supplying division is credited with the standard variable cost B)  The receiving division is credited the market value of the item transferred while the supplying division is charged with the standard variable cost C)  The receiving division is charged the standard variable cost transferred while the supplying division is credited with the market value of the item D)  The receiving division is credited the standard variable cost transferred while the supplying division is charged with the market value of the item

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: Which is not a common method used to allocate costs under the departmental approach?   Multiple…

A: The common method used to allocate costs under the departmental approach are as follow: Step…

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: Match each of the statements to the correct stem.  1. In a make or buy decision,…

A: Make or buy decision is a decision of cost benefit…

Q: Give two limitations of the physical measure method of a joint -cost allocation. Distinguish between…

A: The physical quantities method and the net realisable value method are the two main techniques for…

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: 3. What are differential Revenues? A B C Any Revenue that increases when costs go down. D.…

A: Revenues and Expenses are important part of income statement. Under this, net income is calculated…

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: 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: 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: 8) A single indirect-cost rate distorts product costs because A) there is an assumption that all…

A: Answer : Option A " There is an assumption that all support activities affect all products in a…

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: 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 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: Which of the following equations is correct for determining the required sales in units to generate…

A: Pretax income, also known as earnings before tax or pretax earnings, is the net income earned by a…