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3 years ago

Which two methods are used most often when establishing a transfer price??

1 answer:

4 0

Cost-based transfer pricing and market-based transfer pricing are the methods that usually used in establishing a transfer price.

The cost-based pricing is used determine the price of the product by the method of calculation. It is the best way the company can maximize profit.

The market-based pricing it when the company will look for the other product with similar price and evaluate it.

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Assume that a 6 percent $500,000 bond with semiannual interest payments and a remaining life of 10 years could be purchased toda

Lesechka [4]

Answer:

I will pay $559,864 for this bond

Explanation:

Coupon payment = $500,000 x 6% = $30,000 annually = $15,000 semiannually

Number of periods = 10 years x 2 = 20 period

Interest Rate = 4.5% = 2.25% semiannually

Price of bond is the present value of future cash flows, to calculate Price of the bond use following formula:

Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]

Price of the Bond =$15,000 x [ ( 1 - ( 1 + 2.25% )^-20 ) / 2.25% ] + [ $1,000 / ( 1 + 2.25% )^20 ]

Price of the Bond = $15,000 x [ ( 1 - ( 1.0225 )^-20 ) / 0.0225 ] + [ $500,000 / ( 1.0225 )^20 ]

Price of the Bond = $239,455.68 + $320,408.24 = $559,863.92

Price of the Bond = $559,864

4 0

3 years ago

Read 2 more answers

Ajax Corp., an American company, owns a factory in China. Managers often report back to headquarters in the U.S. that Chinese go

Luden [163]

Answer:

The correct answer is bureaucratic.

Explanation:

Bureaucracy is the organization or structure that is characterized by centralized and decentralized procedures, division of responsibilities, work specialization, hierarchy and impersonal relationships. The term is used in sociology, in administrative science and, especially, in public administration. It could be defined as a set of techniques or methodologies arranged to learn or rationalize the external reality (to which it intends to control the central power) in order to know it and call it in a standardized or uniform way. A clear example of this characteristic of bureaucracies, particularly those of government, is the hiring and assignment or removal of personnel, that is, officials, according to explicit criteria and relevant to the performance of duties.

4 0

3 years ago

Does anyone know how to choose the brainlyest answer

Pie

I just see which one has the most starts or agreements to it

6 0

3 years ago

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The term that comprises organizational principles, values, and norms that may originate from individuals, organizational stateme

boyakko [2]

Answer: Business ethics

Explanation: Business ethics is that branch of ethics, which examines the problems that arise due to unethical behavior of employees within an organisation. Such a behavior can result into serious issues like insider trading or false whistle blowing etc.

Business ethics helps to form the guidance on value and norms that an employee should follow in the form of code of ethics.

8 0

2 years ago

Martha's current marginal utility from consuming orange juice is 75 utils per ounce and her marginal utility from consuming coff

vekshin1

Answer:

The two are not equal and not maximizing her utility.
Martha should more on orange juice and less on coffee

Explanation:

Martha's currently receiving 75 utils per ounce

orange juice costs 25 cents per ounce = $0.25 per ounce

then 75 utils per ounce/ $0.25 per ounce = $300 utils from her last dollar spending on the orange juice though only 50 utils per ounce /$0.20 per ounce = $ 250 utils per dollar from her last dollar exhausted on coffee

The two are not equal and not maximizing her utility.
Martha should more on orange juice and less on coffee.

7 0

3 years ago

Read 2 more answers