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: Consolidate human resources and accounting
Explanation:
According to the given question, the best option for consolidating the human resources and accounting as it helps in managing all the utilization, functions and operation of the product in an organization.
The accounting department basically handle all the investment procedure which is typically made by an organization and also helps in making various types of effective decision of the firm such as promotions and transfers of the employees in an organization.
Therefore, The given answer is correct.
Answer:
innovation.
Explanation:
Collaboration and teamwork are more important today than ever before mainly because of innovation. Since so many ideas have already been created, it is very difficult to come up with new ideas. Therefore collaboration and teamwork help groups put their minds, ideas, and experiences together in order to come up with new and innovative products.
