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
ddd [48]
3 years ago
15

The Eastern Division sells goods internally to the Western Division at Tennessee Company. The quoted external price in industry

publications from a supplier near Eastern is $200 per ton plus transportation. It costs $20 per ton to transport the goods to Western. Eastern's actual market cost per ton to buy the direct materials to make the transferred product is $100. Actual per-ton direct labor is $50. Other actual costs of storage and handling are $40. Tennessee Company's president selects a $220 transfer price. This is an example of: (CIA adapted)
Business
1 answer:
Gennadij [26K]3 years ago
7 0

Answer: Market based transfer pricing

Explanation:

A transfer price is the price which is charged by one division of an organization for the product or service which is supplied to another division of the same organization.

The three main criteria which must be satisfied by transfer pricing system in the decentralized company are:

(1) provision of information that allows central management to assess the divisions based on their contribution to total profit of the company

(2) stimulate every manager’s efficiency without the loss of the division’s autonomy.

(3) motivation of the divisional managers in order to accomplish their own profit goal in a way that contributes to the success of the company.

This is market based transfer pricing because the $220 transfer price that is selected is based on quoted external price.

You might be interested in
As part of the initial investment, Ray Blake contributes equipment that had originally cost $101,300 and on which accumulated de
Mrrafil [7]

Answer:

This is a repeat question on Brainly but here you go.

<h2><em>$51,500 </em></h2>

Whether original cost or replacing cost is given in the question but we considered that cost in which the partner give their consent

So, the equipment amount should be debited at <em>$51,500 </em> instead of the original cost or the replacing cost

4 0
3 years ago
Following a phone call addressing a customer problem, what should you do? O Remove the customer from your mailing list. O Report
kakasveta [241]

Answer:  Follow up with a letter that documents the call and promotes goodwill.

                                         

Explanation: The given case, belongs to the public relations concept under which the company tries to interact better with their customers, so that the customers enjoy a healthy experience and the image of the company remains positive.

The proper way to address a complaint call is to follow up by giving a letter stating the explanation apologies, excuses shall not be mentioned and assurance should be provided that such action would not be taken in future.

                 

7 0
3 years ago
Part of the investigation process for government administrators includes taking notes about conversations and preparing research
iren [92.7K]

Answer:

B

Explanation:

YAN PO I HOPE IT HELPS PO PA BRAINLY NA LNG PO

6 0
2 years ago
By the way do you know how to change your name on here, because my name is Bucky?
Ray Of Light [21]

Answer:

You cant change your name unless you message the mods and say it has personal information or give them a reason y you want to change it. Same i wish I changed mine. lol

Explanation:

3 0
3 years ago
Five firms are currently producing and selling in a market. When two more firms enter the market, economists expect that the equ
Vilka [71]

Answer:

Decrease, Increase

Explanation:

Equilibrium price is that price in the market, where the quantity of the goods supplied or the service offered is equal to the quantity of the goods demanded. At this point the supply as well as the demand curves in the market intersect.

So, when 2 firms will be entering the market, the economist expect that the equilibrium price will decrease or fall and fall in the price leads to increase in the quantity, so the equilibrium quantity will increase.

7 0
3 years ago
Other questions:
  • This morning, you purchased a stock that will pay an annual dividend of $1.90 per share next year. You require a 12 percent rate
    11·1 answer
  • Maas LLP developed software that helps farmers to plow their fields in a manner that prevents erosion and maximizes the effectiv
    11·1 answer
  • Ted is the owner and chief executive officer of a business. He recently began an advertising campaign to promote a new product t
    14·1 answer
  • If the Chief Justice of the Supreme Court is part of the majority, he or she gets to write the _______.
    5·1 answer
  • Fiori Corporation's relevant range of activity is 4,700 units to 11,500 units. When it produces and sells 8,100 units, its avera
    8·1 answer
  • Use the information presented in Northeastern Mutual Bank's balance sheet to answer the following questions.Bank's Balance Sheet
    6·1 answer
  • Which payment option could have interest charged to you?
    13·1 answer
  • American Snacks Inc., a conglomerate, has a strategic alliance with Très Bien Limité, a French snack-maker. However, Très Bien m
    5·2 answers
  • Last year, Natalie submitted her idea for a redesigned bicycle seat on the Fast Flyers Bikes website. She learned this week that
    12·1 answer
  • Differentiate between bad debt and doubtful debt​
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!