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liubo4ka [24]
3 years ago
8

Negotiated transfer prices ______. are consistent with decentralization use the expertise of managers in weighing the costs and

benefits of the transfer ensure that the supplying division will receive a market price ensure that all common costs will be covered preserve the autonomy of the divisions
Business
1 answer:
ruslelena [56]3 years ago
4 0

Answer:

1. are consistent with decentralization.

2. use the expertise of managers in weighing the costs and benefits of the transfer.

3. preserve the autonomy of the divisions.

Explanation:

A negotiated transfer prices can be defined as the final price reached between the buyer (consumer) of finished goods and services and the trader (seller) of such goods and services.

Negotiated transfer prices has the following advantages;

1. Negotiated transfer prices are consistent with decentralization.

2. Use the expertise of managers in weighing the costs and benefits of the transfer.

3. They preserve the autonomy of the divisions.

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Westsyde Tool Company is expected to pay a dividend of $1.50 in the upcoming year. The risk-free rate of return is 6%, and the e
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Return on company's stock = 15.6%

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<u><em>The capital asset pricing model (CAPM)</em></u><em> relates the price of a share to the market risk or systematic risk. The systematic risk is that which affects all the all the economic agents, e.g inflation, interest rate e.t.c</em>

Using the CAPM , the expected return on a asset is given as follows:

E(r)= Rf +β(Rm-Rf)

E(r) =? , Rf- 6%, Rm- 14%, β- 1.2

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Consider the following list of accounts: Cash Retained Earnings Service Revenue Utilities Expense Salaries Expense Accounts Rece
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Cash, account receivable, equipment, utilities expenses, salaries expense

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