<span>E. Conceptual and decision</span><span>
The Internal auditor is the person who reviews the operating and accounting control procedures adopted by management to make sure the controls are adequate.
Internal audit within the company is not only done to review operating and accounting control procedures but to recommend ways that will further operation and accounting control within the company. </span>
Answer:
Total present value= $4,369.14
Explanation:
Giving the following information:
Year Cash Flow
1 $1,130
2 $1,000
3 $1,510
4 $1,870
Discount rate= 9%
<u>To calculate the present value, we need to use the following formula on each cash flow:</u>
PV= Cf/(1+i)^n
PV1= 1,130/1.09= 1,036.70
PV2= 1,000/1.09^2= 841.68
PV3= 1,510/1.09^3= 1,166
PV4= 1,870/1.09^4= 1,324.76
Total present value= $4,369.14
Answer and Explanation:
The manager of division A has the advantage of always selling at a profit since his department is positioned to always sell at profit to division B. However, selling at a transfer price to another department has the tendency to bring an incoherence of operations and decisions in the organization as a whole. If transfer price is high, it is possible that employees of department B may be demotivated as the high costs may negate operations and therefore look bad on their performance.