1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kap26 [50]
3 years ago
13

nder the general transfer pricing rule with excess capacity, the opportunity cost would be equal: Multiple Choice zero. the dire

ct expenses incurred in producing the goods. the total difference in the cost of production between two divisions. the contribution margin forgone from the lost external sale. the summation of variable cost plus fixed cost.
Business
2 answers:
choli [55]3 years ago
7 0

Answer:

zero

Explanation:

When there is an excess capacity available, the opportunity cost will be zero, company can use this capacity to make the potential benefit from an alternative. Transfer pricing is the price charged to a subsidiary division of a company. This price can also be charged by the subsidiary to the parent company. Some companies use this to manage the tax matters. It may also applicable to the transfer of assets of the companies.

Thepotemich [5.8K]3 years ago
3 0

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.

You might be interested in
Bombs Away Video Games Corporation has forecasted the following monthly sales:
vladimir1956 [14]

Answer:

Bombs Away Video Games Corporation

Production and Inventory Schedule

                Sales Units Production units Ending Units

Beginning inventory                                      38,000

January           22,600        15,200               30,600

February          21,200        15,200               24,600

March                7,600        15,200                  1,800

April                   7,600        15,200                9,400  

May                   6,600        15,200               18,000

June                 9,600        15,200              23,600

July                  11,600        15,200              27,200

August            11,600        15,200               30,800

September    13,600        15,200               32,400

October        19,600        15,200               28,000

November   23,600        15,200                19,600

December   27,200        15,200                 7,600

Explanation:

a) data and Calculations:

Sales Budget ($'000)  Sales Units Production units Ending Units

Beginning inventory                          38,000

January        $113,000    22,600       15,200                30,600

February       106,000     21,200       15,200                24,600

March             38,000       7,600       15,200                   1,800

April                38,000       7,600       15,200                  9,400  

May                33,000       6,600       15,200                 18,000

June              48,000       9,600       15,200                23,600

July               58,000       11,600       15,200                27,200

August          58,000      11,600       15,200                30,800

September   68,000     13,600       15,200                32,400

October        98,000    19,600       15,200                28,000

November   118,000    23,600       15,200                19,600

December  136,000    27,200       15,200                 7,600

Total                            182,400    182,400                

3 0
3 years ago
The Churchill Corporation uses a periodic inventory system and the LIFO inventory cost method for its one prod-uct. Beginning in
trasher [3.6K]

Answer:

$32,000

Explanation:

Calculation to determine the before-tax LIFO liquidation profit or loss that the company would report

Before-tax LIFO liquidation profit =8,000 Units × ($12.00 per unit – $9.00 per unit) + (12,000 units-10,000units)× ($12.00 per unit – $8 per unit)

Before-tax LIFO liquidation profit =(8,000 units× $3 per unit)+(2,000 units ×$4 per unit)

Before-tax LIFO liquidation profit =$24,000+$8,000

Before-tax LIFO liquidation profit =$32,000

Therefore the before-tax LIFO liquidation profit or loss that the company would report in a disclosure note will be $32,000

7 0
3 years ago
Why would someone choose to start a franchise business?
Rom4ik [11]

Answer:

The franchise organization model offers the franchisee the ability to grow under a common brand and share in the benefits of a larger group of business owners. ... Training from successful business operators. A lower risk of failure and/or loss of investments than if you were to start your own business from scratch.

6 0
3 years ago
This type of restaurant has a relatively large number of employees per customer
Firlakuza [10]
I think the answer is fine dining. Because if it is a fancy restaurant they want to have as many people to cater to each customer
6 0
3 years ago
Read 2 more answers
When calculating the future value of multiple cash flows using a spreadsheet, you must:_________
pashok25 [27]

The answer is to calculate the present value of each cash flow and then add the discounted values together.

When calculating the future value of multiple cash flows using a spreadsheet, you must  calculate the present value of each cash flow and then add the discounted values together.

<h3>What is the meaning of cash flow?</h3>

A cash flow is a physical or digital flow of funds.

The phrase "cash flow" is typically used to represent payments that are projected to happen in the future, are thus unknown, and so need to be forecast using cash flows; a cash flow in its restricted sense is a payment (in a currency), especially from one central bank account to another;

A cash flow's time t, nominal quantity N, currency CCY, and account A are what make it up; symbolically, CF = CF (t,N,CCY,A).

However, it is common to use the term "cash flow" in a broader meaning to describe (symbolic) payments into or out of a company, project, or financial product.

Value, interest rate, and liquidity are only loosely correlated with cash flows. A cash flow that will occur on day tN in the future can be changed into a cash flow with the same value on day t0.

To know more about cash flow, visit:

brainly.com/question/15046681

#SPJ4

4 0
1 year ago
Other questions:
  • Oswego clay pipe company sold of pipe to southeast water district #45 on of the current year with terms . oswego uses the gross
    6·1 answer
  • On January 1, 2018, Moonbucks, Inc., received $79,380 and agreed to pay $100,000 in 3 years on December 31, 2020. The market rat
    10·1 answer
  • In which of the following situations should you expect to provide your Social Security number? A. Signing up for an after-school
    6·2 answers
  • In recent years, the U.S. labor market has experienced a __________ in the earnings gap between men and women. One of the main f
    13·1 answer
  • A production facility is trying to determine the best batch size for an item that is produced intermittently. This item has an a
    15·1 answer
  • An internal accounting system should:
    10·1 answer
  • *Improper Answers = BAN*
    6·1 answer
  • Ann Jones uses a dry-cleaning machine in her business, and it was partially destroyed by firE. At the time of the fire, the adju
    13·1 answer
  • Unit test Review
    8·1 answer
  • Swifty Company's accounting records show the following at the year ending on December 31, 2022: Purchase Discounts $ 11300 Freig
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!