Answer:
ZERO.
Explanation:
A transfer price normally is used to determine the cost to charge another division, subsidiary, or holding company for services rendered. It is said that transfer prices are priced based on the going market price for that good or service. Transfer pricing can also be applied to intellectual property such as research, patents, and royalties.
However, companies at times can also use (or misuse) this practice by altering their taxable income, thus reducing their overall taxes. The transfer pricing mechanism is a way that companies can shift tax liabilities to low-cost tax jurisdictions.
Answer:
Direct materials and direct labor.
Explanation:
A variable cost is the one that vary depending on the level of production or sales. The cost increase or decrease according to the level of volume change.
The variable costing charges only direct costs (material, labour and variable overhead costs) into the cost of a product. It is lower than the cost calculated under absorption costing, that also include fixed manufacturing overhead.
Fixed manufacturing overhead is considered as a periodic cost and charged from the periodic gross profits.
Explanation:
The correct journal entry is as follows:
Cash Dr $90
Service revenue Dr $560
To Account receivable $650
(Being the cash received is recorded)
Basically we debited the cash for $90 and service revenue for $560 and credited the account receivable for $650 so that the correct posting could be done
The cash difference is
= $650 - $560
= $90
Answer:
Inventory= $3,240
Explanation:
Giving the following information:
They made the following purchases during August:
August 01: 300 units $1,560 total cost
August 12: 400 units 2,340 total cost
August 24: 400 units 2,520 total cost (2520/400= $6.3)
August 30: 300 units 1,980 total cost (1980/300= $6.6)
A physical count on August 31 reveals that there are 500 units on hand.
FIFO (first-in, first-out)
Inventory= 300*6.6 + 200*6.3= $3,240
Answer:
Geo-demographic technique
Explanation:
This is a technique that simply combine data on consumer expenditures and socioeconomic variables with geographical information in order to identity commonalities in consumption patterns of households in various regions.
