Many firms prefer to use market prices for transfer prices. Why would they have this preference?
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 76% (13 reviews)
Marketbased transfer pricing is considered optimal unde...View the full answer
Answered By
Deepak Pal
Hi there! Are you looking for a committed, reliable, and enthusiastic tutor? Well, teaching and learning are more of a second nature to me, having been raised by parents who are both teachers. I have done plenty of studying and lots of learning on many exciting and challenging topics. All these experiences have influenced my decision to take on the teaching role in various capacities. As a tutor, I am looking forward to getting to understand your needs and helping you achieve your academic goals. I'm highly flexible and contactable. I am available to work on short notice since I only prefer to work with very small and select groups of students. Areas of interest: Business, accounting, Project management, sociology, technology, computers, English, linguistics, media, philosophy, political science, statistics, data science, Excel, psychology, art, history, health education, gender studies, cultural studies, ethics, religion. I am also decent with math(s) & Programming. If you have a project you think I can take on, please feel welcome to invite me, and I'm going to check it out!
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
Question Posted:
Students also viewed these Managerial Accounting questions
-
Why would audit firms prefer to use proprietary work papers rather than just storing working papers on the cloud?
-
Why do companies often use prices other than market prices for interdivisional transfers?
-
Why would taxpayers generally prefer the tax treatment of market discount to the treatment of original issue discount on corporate bonds?
-
A company has 10,000 employees. Each employee is entitled to twenty days of paid holiday per calendar year. Up to five days of this entitlement may be carried forward and taken in the following year...
-
Davidson Gasket Inc. computed a pretax financial loss of $25,000 for the first year of its operations, ended December 31, 2013. Analysis of the tax and book bases of its liabilities disclosed $55,000...
-
What is the purpose of an interface?
-
Palanquin Auto is a national pre-owned car retailer that offers an online marketplace for customers interested in purchasing a pre-owned automobile. In an effort to reduce price negotiation,...
-
A bicycle manufacturer currently produces 300,000 units a year and expects output levels to remain steady in the future. It buys chains from an outside supplier at a price of $2 a chain. The plant...
-
Suppose the economy has the following consumption pattern Sandwich Hotdog Cell phone Super car 2019 Price $7 $3 $200 $5,000 Quantity 500 400 100 3 2020 Price $10 $5 $250 $7,000 Quantity 200 400 100 2...
-
Laxtec, Inc., is a subsidiary of a Texas-based company that manufactures surveillance cameras. Laxtecs main function is to manufacture the motor and arm that rotates the cameras. Lactic is located in...
-
Do transfer prices exist in centralized firms? Why?
-
What are the limitations of market-based transfer prices? What are the limitations of cost based transfer prices?
-
A company can calculate the internal rate of return of the incremental after-tax cash flows from financial leases when evaluating a lease. Calculate the IRR of the lease cash flows in question 5. To...
-
mean? What do the following RTL (register transfer language) expressions a. [$400] [R2] + 12 b. [$510] [R2] + [12] c. [R1] [$200] - [$15] +3 d. [RO] [$400 - $30] +5
-
Your company uses Azure Virtual Desktop ( AVD ) and Microsoft Entra Domain Services for authentication. You create an Azure storage account named Storage 1 and a new File share named FileShare 1 ....
-
Your company uses Azure Virtual Desktop ( AVD ) . You have a host pool named HostPool 1 that contains 2 5 pooled session hosts. You plan to use the Microsoft 3 6 5 Defender portal to monitor and...
-
Your company uses Azure Virtual Desktop ( AVD ) . You have a host pool named HostPool 1 that contains a session host named SessionHost 1 . HostPool 1 also has an application group with the following...
-
(a) Which combination of quantities p, , 1 and Q is dimensionless: Poemo, : PpQ (6 marks)
-
What happens to total utility as marginal utility diminishes (as one consumes more of a good)?
-
Q1) What is the a3 Value Q2) What is the a7 Value Q3) What is the a4 Value Q4) What is the b3 Value Q5) What is the b2 Value Q6) What is the sign of 2nd constraint? A pastry chef at a bakery wants to...
-
How does thread synchronization occur inside a monitor?
-
Bramell Park is an amusement park with an entrance fee that allows unlimited rides. Last year, the company sold 88,000 one-day admission tickets with an average price of $125 and 30,000 three-day...
-
What role do packages play in zero-based budgeting? How do these roles address critiques of traditional budgeting?
-
Raynor Testing Services (RTS) is a new company that has not yet developed a formal planning and budgeting process. RTS is unsure how to proceed. It understands that the following five steps need to...
-
Describe a time when you had to stop a client's violent or destructive behaviour. What did you do? What would you have done differently?
-
Analyze the integration of digital technologies, such as process simulation, computational fluid dynamics (CFD), and advanced control systems, in achieving process intensification, focusing on...
-
When monochromatic light of an unknown wavelength falls on a sample of copper, a minimum potential of 2.49 V is required to stop all of the ejected photoelectrons. (The work function for copper is...
Study smarter with the SolutionInn App