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GarryVolchara [31]
3 years ago
15

Briefly describe the conditions that should be met for market-based transfer pricing to lead to optimal decision making among su

bunits of a large organization. Notice that, when supply outstrips demand, market prices may drop well below their historical averages. What are distress prices and which transfer prices should be used for judging performance if distress prices prevail?
Business
1 answer:
beks73 [17]3 years ago
3 0

Answer:

Market based transfer pricing should be made only when it leads to the highest total profit for all sub units collated as a consolidated results of the entire organization.

Explanation:

Distress prices signal a  markdown in the price of a good to sustain its production in the face of prevailing fall in prices.

When supply outstrips demand and sales slows down, continuing the production of the item is preferable as it covers some of the fixed costs of the product.

The distress price is the variable cost of the product plus a minimum mark-up.

The dual transfer prices should be used for judging performance if distress prices prevail

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An unlimited payment plan for controlling sales force expenses is not used very widely is flexible so management can allow for c
Sauron [17]

Answer:

Explanation:

An unlimited payment plan for controlling sales force expenses Is flexible so management can allow for cost differentials arising from variations in jobs or territories

8 0
3 years ago
Write a report describing the differences between regular and on-line banking
Sophie [7]

Answer:

The banking industry has quickly advanced in the previous couple of decades. Banks have turned out to be worldwide foundations, working in numerous nations around the globe—and, maybe more significantly, online.  

Present day customers have started to put more significance on the online banking capacities of their budgetary establishments, constraining European banks to dispatch new items and modify their digital systems to keep up. Less customers are visiting nearby offices; truth be told, there have been numerous reports asserting that online banking is the main source of the disappearing of neighborhood bank offices crosswise over Europe.  

The greatest contrast between conventional banking and online banking is a physical presence: a traditional bank has a home office, just as territorial HQs, with branches situated over the nations in which it works. Numerous traditional banks work their very own ATMs, however littler conventional banks may combine to work a substantial number to share costs. Conventional banks, with their nearby offices, were at first picked for their benefit — for example which bank had a branch nearest to home — just as their eye to eye client administration.  

Online banking is of most extreme significance to present day consumers.To remain aggressive and guarantee their customers are fulfilled, most customary banks have fused web banking in their administrations. Online entrances enable customers to view their balances, exchange cash, open new records and even apply for a home loan to purchase a home or contribute — which is all accessible 24 hours every day, seven days seven days not at all like physical branches. Online client administration, including email and talk and video call, have started to surpass telephone calls and visits to the bank's nearby office. Such administrations permit customers

7 0
3 years ago
Assume you save 25% of each additional dollar of income. Congress decides to increase government spending by $100. How much will
Archy [21]

Answer:

The amount by which each additional dollar of government spending increase output (Y) is 4.

Explanation:

Since you save 25% of each additional dollar of income, we therefore have:

MPS = Marginal propensity to save = 25%, or 0.25

Multiplier = 1 / MPS = 1 / 0.25 = 4

The multiplier is the amount by which each additional dollar of government spending will increase output (Y).

Therefore, the amount by which each additional dollar of government spending will increase output (Y) is 4.

Additional note:

This is not part of the requirement of the question but it is just for you to learn from.

Since we have:

Increase in government spending = $100

Therefore, we have:

Increase in output (Y) = Multiplier * Increase in government spending = 4 * $100 = $400

3 0
4 years ago
A domestic company creates a strategic partnership with a foreign company in order to enter a foreign market. Both companies sha
Masja [62]

When two companies come together strategically to operate is called a joint venture.

<h3>What is a Joint Venture?</h3>

A Joint simply put is when two separate entities or business agree to share resources with the aim of archeiving similar or one objective.

Mostly, this is carried out when a  company intend to enter a foreign market.

Learn more about joint venture here:

brainly.com/question/9389546

6 0
2 years ago
The Carbon coal company has 2 mines, a surface mine ad a deep mine. it costs $200 per day to operate the surface mine and $250 t
Elden [556K]

Answer:

The company should operate the surface mine for 40 days and the deep mine for 30 days. Total costs = $15,500

Explanation:

we have to minimize the following equation: 200S + 250D

where:

S = surface mine

D = deep mine

the constraints are:

12S + 4D ≥ 600 (medium grade coal constraint)

6S + 8D ≥ 480 (medium hard coal constraint

S ≤ 60

D ≤ 60

S, D ≥ 0

S, D are integers

using solver, the optimal solution is 40S + 30D = $15,500

3 0
3 years ago
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