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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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Accounting is the information system that A. processes information into reports. B. measures business activity. C. communicates
Natalka [10]

Answer:

The correct answer is letter "D": All of the above.

Explanation:

Accounting is the activity by which the economic transactions of a company are registered in ledgers that together form a group where information is recorded to be summarized at the end of an accounting period in Financial Statements. That report is useful for top managers since they can make decisions about what the firm should implement or replace to maximize the firm's resource allocation and profits.

8 0
3 years ago
Here are incomplete financial statements for BLOSSOM, Inc. Calculate the missing amounts
Otrada [13]

Answer:

(A) net income: 20,000

(B) COGS = 55,000

(C) Common Stock = 30,000

Explanation:

(A) with the RE statemtn we sovle for RE

net income = ending RE - beginning RE + dividends

net income = 27,000 - 12,000 + 5,000 = 20,000

(B) With the net income we solve for COGS

COGS= revenues - net income - salaries and wages

COGS = 85,000 - 20,000 - 10,000 = 55,000

(C) now we solve for common stock

liab + equity = total liab and stockholders equity

account payable + common stock + RE = total liab and stockholders equity

5,000 + CS + 27,000 = 62,000

CS = 62,000 - 27,000 - 5,000 = 30,000

5 0
3 years ago
A financial analyst is attempting to assess the future dividend policy of Environmental Systems by examining its life cycle. She
GrogVix [38]

Answer:

Consider the following calculations

Explanation:

A. Dividend per Share = Dividend Payout Ratio * Earnings Per Share

Putting the values given to calculate dividend per share we get,

Stages DPS = Payout Ratio * EPS DPS

Stage 1 =0.00*$0.30                         $0

Stage 2 = 0.13*1.95                         $0.25

Stage 3 =0.31 * $ 2.80                         $0.868

Stage 4 = 0.56*$3.40                         $1.90

b. Calculation of Investors After Tax Income from Cash Dividend:-

Cash Dividend = Number of Shares * DPS in Stage IV

= 290 * $ 1.90

= $552.16

After Tax Income = DIvidend ( 1 - Tax Rate)

= $ 552.16 ( 1- 0.15)

= $ 469.34

C:- In Stage II and Stage III for Growth & Expansion respectively, the firm is likely to utilise stock dividend or stock split.

5 0
3 years ago
Presented below are incomplete manufacturing cost data.
Usimov [2.4K]

Answer and Explanation:

The computation of the missing amount is as follows

As we know that

Total manufacturing costs is

= Direct materials cost + Direct labor cost + Factory overhead  cost

And,

Cost of goods manufactured is

= Total manufacturing costs + Beginning work in process - ending work in process

Based on this, the calculation is as follows

  <u> Direct materials Direct labor Factory       Total</u>

<u>                                                       overhead  manufacturing costs </u>

1. $44,000               $62,200     $51,100        $157,300

2. $78,500             $77,500     $144,000       $300,000

3. $58,600            $138,400     $114,000       $311,000

Now

<u>  Total Manufacturing Costs Beg. Work   End. Work  Cost of Goods </u>

<u>                                               in Process  in Process  Manufactured </u>

1. $157,300                           $122,000     $85,200      $194,100

2. $300,000                         $123,400        $99,800     $323,600

3. $311,000                            $465,000       $57,000     $719,000

4 0
3 years ago
The annual percentage rate on a credit card determines _______.
adell [148]
The amount of interest you are charged on credit card purchases
5 0
3 years ago
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