Answer: $2,400
Explanation:
The best transfer price is the related cost to the division in question and this is usually the Variable cost of production.
Since there is excess capacity, we can assume that no benefits will be lost in transit.
To calculate therefore, we simply add up all the Variable costs of production.
= Direct labor + Direct Material + Variable Overhead.
= 1,300 + 700 + 400
= $2,400
$2,400 is the best transfer price to avoid transfer price problems.
Answer:
True
Explanation:
This simply means that the US would be at an advantage over Japan if in the U.S, labor productivity level of a worker equaled 40 units per hour while in Japan it is 15 units per hour.
Since a company overall performance is determine usually by wotkers production capacity, the US workers would be producing more in an hour for the company at reduced cost than Japanese workers.
Answer:
product departmentalization.
Explanation:
product departmentalization is the internal process performed by a corporation of dividing its business activities up according to the type of goods or services produced. Product departmentalization typically groups tasks related to a particular product or product line under one senior manager who specializes in that aspect of the company's business.
Answer: a. both finished products and intermediate goods
Explanation:
Both finished goods and intermediate goods can either be imported or exported. If a company that is selling goods at the merchandising level sources the goods from outside, they would be importing a finished good and the company that sent it to them would be exporting same.
Sometimes however, producers would import an intermediate good to help them finish production or to even develop the good further for instance Apple buying screens for phones from Korea. Apple would be importing a intermediate good in this scenario and Korea would be exporting it.
