Answer:
The minimum transfer price that the Alabama Division should accept is $60 per unit.
Explanation:
The division providing the goods internally often has the opportunity to sell these same goods externally instead and so the minimum they will be willing to charge another division is cost plus their profit margin (i.e. the minimum they would normally charge an external customer).
the minimum price to be charged is :
Variable cost per unit = $24
Fixed Cost per unit = $15
Total Cost per unit = $39 and the profit margin when added makes its selling price to be equal to $60 (i.e. the price which is to be charged from outside customers).
Alabama Division will cover its minimum opportunity cost i.e. its sales price to the external customers which it will charge from Arkansas division .
Minimum transfer price = $60 per unit.
Therefore, The minimum transfer price that the Alabama Division should accept is $60 per unit.
Answer:
Marketing brochure for the company’s new product
Explanation:
As we know that
Gross profit is a difference between sales and the cost of goods sold
In mathematically,
Gross profit = Sales revenue - cost of goods sold
The cost of goods sold includes the cost related to the material, direct labor, manufacturing overhead, etc
Moreover, it consist of wages of factory workers, maintenance cost
Therefore the marketing brochure is not included in the gross profit as it used to display the company products to the customers
Ceteris paribus mean other thing remaining the same.
so the correct answer should be B.
Answer:
Vijay Bahuguna is the 6th cheif minister of Uttarkand.
Explanation:
Hope this helps.
Answer:
The following Apply :
A. Based on past experience and data Developed by the SCAB (Standard Cost Accounting Board
B. Used in preparing flexible budgets Useful for manufacturing companies, but not service companies
Explanation:
Standard Cost set levels of Costs and Revenues that ought to be achievable when reasonable levels of performance are attained together with working practices to manufacture a product.
Data is obtained from past experience and used to prepared flexible budgets for control purposes.
