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.
Answer:
$100
Explanation:
Alto's share value = (2,400 × $24) = $57,600
Alto's total value = Share value + Incremental value of acquisition = $57,600 + $5,500 = $63,100
Net present value (NPV) = Alto's total value - Cost of acquisition = $63,100 - $63,000 = $100
Therefore, the net present value of acquiring Alto to Solo is $100.
Answer:
Adriana Corporation
Using the High and Low method the Variable and Fixed portions of the Total Cost is:
Fixed Costs = $247,420
Variable Costs = $39.50 Per unit x 8,020 Machine Hours = $316,790
B. at an average of 7,500hrs Machine hours, the estimated Overhead costs = $247,420 x (39.50 x 7,500)
= $543,670
Explanation:
The High and Low Method is a costing method which attempts to split the mix of Fixed and Variable costs in a mixed Total cost of production by looking at one element of variability (in this case Machine Hours)
It is a subjective approach, however simple to calculate. Other method is the regression analysis, which is more complex in comparison to the high and Low
The attached excel file shows how we derived the Variable and Fixed Costs element of the Overhead Costs
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ANSWER: There are many ways how entrepreneurs benefit the economy. Few of them are
1) Create Jobs: Entrepreneurs create jobs in the community. When someone opens a new business or expands his new business, he will need human resource to help him to do his works.
2) Wealth Creation: Entrepreneurs pool in their own money and attract investment from lenders, banks and other investors. This mobilizes public wealth.
3) Exports: Entrepreneurs after growing in their businesses will want to export their products as a part of extending their market. This will help gain foreign currency in the country.
Answer:
forced U.S. to become more self-reliant
Explanation:
The 1807 Embargo Act in the short run resulted in very serious negative effects, but in the long run it helped the American economy to be more self-reliant.
Some of the negative effects on the short run include:
-agricultural products' prices and earnings decreased
-shipping-related industries were devastated
-existing markets were wrecked
-unemployment increased
-smuggling was widely endorsed by the public
-prices of domestic shipping increased
-imports and exports decreased
As a very positive effect, specially on the long run, it increased reliance on domestic manufacturing
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