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sammy [17]
3 years ago
10

When should the top management intervene in setting the transfer price? The transfer is an extraordinarily large order. Internal

transfers are rare. Internal transfer benefits the company but the division managers cannot agree on a price. All of the above.
Business
2 answers:
Mars2501 [29]3 years ago
4 0

Answer:

The transfer is an extraordinarily large order.

Explanation:

The role of top management is to deal with important and relevant issues, that is why they are in charge of corporate strategies while middle managers are responsible for developing and carrying out business tactics necessary for achieving them.

Unless the amount of goods transferred from one subsidiary to another, or to the parent company is extremely large, then middle managers should deal with it. E.g. a bank's CEO will not get involve in a loan's underwriting unless the loan is for many millions. The same with any company's CEO, CFO or COO, they are paid to deal with important stuff, not common day to day things.

kykrilka [37]3 years ago
3 0

Answer:

Internal transfer benefits the company but the division managers cannot agree on a price.

Explanation:

Based on the scenario been described in the question, the situation when the top managers can intervene, it is when internal transfer will benefit the company, but the division managers cannot come into a unanimous agreement, in this case, it will make the top managers to step in making and help in the decision of pricing for them to resolve the conflict of agreeing on price.

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<span>If Part i51 is used in one of pries corporation's products and the company makes 18,000 units of this part each year, then the company's accounting department reports the following costs of producing the part at this level of activity that an outside supplier created an offer to produce and create a selling process to the company.</span>

4 0
3 years ago
Manuel works for a very large company that sells stocks to shareholders. This is an advantage for which type of business structu
Rom4ik [11]

Answer:

Corporation

Explanation:

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3 0
3 years ago
In early July, Damon Rutton purchased a $70 ticket to the December 15 game of the Sarasota Shippers. Parking for the game was ex
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Answer:

Sunk cost will be = $70

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8 0
3 years ago
You observe that the inflation rate in the United States is 1.5 percent per year and that T-bills currently yield 2.0 percent an
Kamila [148]

Answer:

(a) 7.5%

(b) 8.5%

(c) 9.5%

Explanation:

(a) Foreign country inflation rate - US inflation rate = Foreign country risk free rate - US risk free rate

Lets foreign country inflation rate = X

X - 1.5 = 8 - 2

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X - 1.5 = 9 - 2

X - 1.5 = 7

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   = 8.5%

(c)

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X - 1.5 = 10 - 2

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6 0
3 years ago
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Yuliya22 [10]
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