Why are the profits on exports of intermediate parts by IWPI-U.S. to IWPI-Spain included in the value of the project?
What will be an ideal response?
Even though the intermediate parts are sold by IWPI-U.S. to IWPI-Spain at an internally determined transfer price, this price should incorporate profit to the parent. We explicitly discuss transfer pricing issues in Chapter 19 where we argue that the government authorities require that transfer prices be done at market prices that would be observed between third parties. If IWPI-U.S. sells replacement parts for its hinges and handles, it will have a retail price for these intermediate parts, and those prices will determine the transfer prices.
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List the four steps in the automobile decision
What will be an ideal response?
A chi-squared test statistic in a test of a contingency table that is equal to zero means:
a. The two nominal variables are equal. b. The two nominal variables are independent. c. The two nominal variables have the same proportions listed in H0. d. All of these choices.
Which of the following should be the first step in assessing ethical behavior in a certain situation?
A) Seek the advice of managers. B) Make a judgment based on the outcome of the activity. C) Consider appropriate moral values. D) Collect facts related to the situation. E) Gather a range of opinions on the effectiveness of the policy.
If the null hypothesis is true for one-way ANOVA, we would expect MSB to be larger than MSW, causing the critical F-score to exceed 1.0
Indicate whether the statement is true or false