In this case, the $6,000 refers to your sales. If expenses and returns were deducted it will be your net sales. Sales refers to the activity of selling an amount of goods or services to consumers who enter your storefront. The goal is to make sure your sales are greater than all of our expenses to make sure you are turning a profit each month.
Answer:
Stone Foods produces the majority of its cheese products in its U.S. based dairy division at a total outlay cost of $6.00 per unit. A large portion of the finished product is sold to Division B where it is packaged and sold overseas under a different label. The tax rate in Division B's country is higher than the U.S. tax rate. Assume the company desires to minimize the overall tax impact of the transfer (i) what type of relative pre-tax income should each division desire to achieve as a result of the transfer and (ii) what type of transfer price would accomplish your answer to (i).
Dairy Division Income Division B Income Transfer Price
.
Option "D" is the correct answer - High Low High.
Explanation:
Since in Division B, the tax rate is higher than the tax rate in US-based dairy division. Therefore to minimize the impact of the overall tax, transfer price from dairy division should be high to Division B so that the dairy division income would be higher. and the income of Division B would be lower.
Hence option "D" is the correct answer.
The answer is wholly owned foreign subsidiary.
There are several ways a multinational corporation can expand their businesses overseas.
Some examples include a joint-venture which is an example of a strategic alliance where two or more enterprises collaborate to undertake a commercial activity.
In wholly owned foreign subsidiary, however, the enterprise involved is only the one who wishes to expand their businesses overseas, and there is no local company involved.
Answer:
going out to eat,
Explanation:
In this scenario, the opportunity cost would be going out to eat, which is what you are giving up doing. Opportunity cost is just that, whatever you give up in order to accept another opportunity between two or more choices. In this scenario, the two choices were going to the movies or going out to eat, since you chose to go to the movies your opportunity cost was going out to eat. If you would have chosen to go out to eat, then your opportunity cost would have instead been going to the movies since you gave that up.
Answer:
Account and Settings > Expenses > Purchase orders
Explanation:
