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seraphim [82]
3 years ago
7

Center Chemical Company's Industrial Division makes 400,000 gallons of rubbing alcohol each year and has enough capacity to manu

facture 40,000 more. Center's leadership wants the Industrial Division to sell 75,000 gallons of the alcohol to the firm's Consumer Division, which currently purchases alcohol from an outside vendor. Center's VP of Operations thinks the best way to arrange a transfer between the two divisions is via cost-based transfer pricing, while the firm's CFO argues that use of negotiated transfer pricing is a better option. If Center's CEO wants the firm to better control costs across all divisions, she should go with the pricing plan proposed by the _________.
Business
1 answer:
Fittoniya [83]3 years ago
5 0

Answer:

cost-based transfer pricing

Explanation:

If the firm uses negociated rtansfer pricing they will stablish the transfer price based on manager bargain skill and leverage of each division. The CEO will not a grip on controlling cost across all dvisions, the managers will.

Therefore the best option is to go with a cost-based transfer pricing. The CEO can determinatethe method to determinate the cost and indriectly the cost across all divisions.

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At least once every 5 years.
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The internet corporation for assigned names and numbers (icann) uses companies called _____ to handle the business of registerin
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3 years ago
National Advertising just paid a dividend of D0 = $0.75 per share, and that dividend is expected to grow at a constant rate of 6
Temka [501]

Answer:

$8.78

Explanation:

National advertising made dividend payment of $0.75 per share

The dividend is expected to grow at a constant rate of 6.50%

= 6.50/100

= 0.065

The company beta is 1.85

The required return on the market is 10.50%

The risk free rate is 4.50%

The first step is to calculate the rate of return using the CAMP model

R = Risk free rate+beta(market return-risk free rate)

= 4.50%+1.85(10.50%-4.50%)

= 4.50%+1.85×6%

= 4.50%+11.1

= 15.6

Required rate of return= 15.6

Therefore the current stock price can be calculated as follows

Po= Do(1+g)/(r-g)

Where Do= 0.75, g= 0.065, r= 15.6

Po= 0.75(1+0.065)/(0.156-0.065)

Po= 0.75(1.065)/0.091

Po= 0.7987/0.091

Po= $8.78

Hence the company current stock price is $8.78

3 0
3 years ago
Job-order costing works well whenever
san4es73 [151]

Answer:

B. homogenous products pass through a series of processes and receive similar amounts of materials, labor, and overhead

Explanation:

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3 years ago
Read 2 more answers
Use the graph to answer the question that follows. Graph has quantity along the horizontal axis and price along the vertical axi
Jlenok [28]

The statement that would describe the shift from D1 to D2 is Demand for the product increased.

<h3>Why was there a shift from D1 to D2?</h3>

D2 is a curve that is to the right of D1 which means that it represents a higher level of demand for goods and services.

This means that for the demand to move from D1 to D2, there must have been an increase in the demand for the good or service and this could have been for any number of reasons including a reduction in the price of complimentary goods.

Find out more on determinants of demand at brainly.com/question/1245771

#SPJ1

8 0
1 year ago
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