Answer:
Stone Foods produces the majority of its cheese products in its U.S. based dairy division at a total outlay cost of $6.00 per unit. A large portion of the finished product is sold to Division B where it is packaged and sold overseas under a different label. The tax rate in Division B's country is higher than the U.S. tax rate. Assume the company desires to minimize the overall tax impact of the transfer (i) what type of relative pre-tax income should each division desire to achieve as a result of the transfer and (ii) what type of transfer price would accomplish your answer to (i).
Dairy Division Income Division B Income Transfer Price
.
Option "D" is the correct answer - High Low High.
Explanation:
Since in Division B, the tax rate is higher than the tax rate in US-based dairy division. Therefore to minimize the impact of the overall tax, transfer price from dairy division should be high to Division B so that the dairy division income would be higher. and the income of Division B would be lower.
Hence option "D" is the correct answer.
Answer:
1. What amounts did Target report for the following items for the year ended January 30, 2016?
b) Income from current operations
$2,669 million
c) Net income or net loss
$2,737 million
d) Total assets
$37,431 million
e) Total equity
$10,953
2) What was Target’s basic earnings per share for the year ended January 30, 2016?
$4.74 per share
Why do you think Target has chosen to have its fiscal year end on January 30, as opposed to December 31?
I guess that Christmas Holiday season is very important for them and a large percentage of their revenue is generated during November and December. It reports at the end of January to have time to consolidate its financial statements.
3) Regarding Target’s audit report:
Who is Target’s auditor?
Ernst & Young
Did Target receive a "clean" (unmodified) audit opinion?
yes, it did
Answer:
Option (b) is correct.
Explanation:
Given that,
Beginning work in process inventory balance = $32,000
Direct materials was placed into production = $54,500
Direct labor = $63,400
Actual manufacturing overhead = $86,500
Jobs costing completed during the year = $225,000
Ending work in process inventory balance:
= Beginning work in process inventory balance + Direct materials was placed into production + Direct labor + Actual manufacturing overhead - Jobs costing completed during the year
= $32,000 + $54,500 + $63,400 + $86,500 - $225,000
= $11,400
Hello!
You forgot the alternatives!
incentives
<span>margin </span>
<span>markets </span>
<span>scarcity
</span>
The term that is most closely related to trade-off, from the list above, is: scarcity. Scarcity is the condition that moves the trade-offs, it determines the quantity of each product you need or have. So, for example, if you need a product that you don't have enough and another that you have in excess, you can exchange it with someone that have interest in your product and has the one that you need.
Hugs!
