Companies use transfer pricing to accomplish all of the following except:
a. ensure optimal resource allocation.
b. change a cost center to a pseudo-profit center.
c. enhance goal congruence.
d. to compute the sales volume variance.
d
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Inventories that are in transit in containers or trucks are ______.
A. known as pipeline inventories B. known as in-house inventories C. relatively small in global supply chain (as compared to domestic supply chains) D. known as en route inventories
Wang Company provides the following data for the current year:Estimated Factory Overhead$7,800Factory Overhead Incurred$11,400Factory Overhead Applied?Estimated Direct Labor Cost$12,000Direct Labor Cost Incurred$11,800Required:a. Calculate the predetermined overhead allocation rate based on direct labor.b. Determine the amount of overhead applied to production.c. Prepare the journal entry to apply factory overhead to Work in Process.
What will be an ideal response?
Suppose the rate of return on a 10-year T-bond is 6.90%, the expected average rate of inflation over the next 10 years is 2.0%, the MRP on a 10-year T-bond is 0.9%, no MRP is required on a TIPS, and no liquidity premium is required on any Treasury security. Given this information, what should the yield be on a 10-year TIPS? Disregard cross-product terms, i.e., if averaging is required, use the arithmetic average.
A. 4.60% B. 4.00% C. 3.04% D. 4.76% E. 3.92%
Retrospective adjustments are expected to
A. impact financial statements of only previous years. B. impact financial statements of previous years and current years as if the accounting principle had always been used. C. produce no impact on the financial statements of previous years. D. produce no impact on the financial statements of the current year.