Explain the meaning of transfer pricing and how a company could price products passing from one operating division to another when they also have external customers.

Q: Which of the following is the best definition of product costs? a. Product costs are those costs…

A: Cost refers to amount or value which has to be incurred in order to purchase or produce a product…

Q: Cable Network System Bhd (CNS) is a supplier of equipment to telecommunication companies such as…

A: Hey, since there are multiple sub parts posted, we will answer first three subparts alone.

Q: Transfer Pricing Issues When transfer prices are based on actual cost, a supplying division oftenhas…

A: In order to provide an incentive for a supplying division to reduce costs, the transfer pricing…

Q: Explain  how absorption costing technique could improve organisational performance

A: In contrast to variable costing, absorption costing considers all of the costs of manufacturing, not…

Q: in intended application between sales life-cycle analysis and life-cycle costing

A: The strategic pricing depends on the product price which it supported the worth it charges to the…

Q: Why are cost centers considered to be more appropriate than profit centers for production…

A:

Q: How should a company decide on the number of cost pools it should use to allocate costs to…

A: Costing: Costing is a technique used in cost accounting to determine the cost of a product. With the…

Q: Management of Great Springs Bottled Water Company has asked you, the controller, to develop a…

A: Financial statement: Financial information is a written record of an organization and individual…

Q: The target costing is a cost management technique. Discuss the advantages of using this technique…

A: Definition:   Target costing: A costing system that emphasizes on the minimization of existing and…

Q: activities performed by another firm or individual

A: Option "b" is wrong because responsibility centers are units within the firm, not another firm or…

Q: Management of Great Springs Bottled Water Company has asked you, the controller, to develop a…

A: Transfer pricing concept is used when products needs to be transferred between departments of same…

Q: The primary objective of a transfer pricing system/scheme/policy is to motivate segment managers to…

A: internal transfer can be between the division or between the related companies.

Q: Explain the impact of Migration in marketing?

A: Migration in a general sense refers movement of something from one place to another. If a person is…

Q: Explain different costing and pricing methods to make business decisions.

A: Decision-making process: Decision making can be defined as the process of making choices through…

Q: Management of Great Springs Bottled Water Company has asked you, the controller, to develop a…

A:

Q: Computer controlled machining system is an example about which of the following primary activities…

A: Value chain analysis has 5 primary activities namely Inbound logistics, Outbound Logistics,…

Q: Management of Great Springs Bottled Water Company has asked you, the controller, to develop a…

A: Answer 1

Q: Management of Great Springs Bottled Water Company has asked you, the controller, to develop a…

A: Transfer price is unit selling price for selling department and unit cost price for receiving…

Q: Differentiate between the adoption of “Variable costing” and “absorption costing” in business.

A: Variable costing and absorption costing are the two different costing systems used by the business.…

Q: When a buying division purchases from outside supplier because the minimum transfer price is higher…

A: The maximum price is the price that can be paid by the buying decision so it may have no loss.

Q: Discuss the benefits of quality cost reports that simply list the quality costs for each category.…

A: Since the student has posted multiple questions, we will answer the first three alone. Thank you.

Q: Explain the Role of absorption costing to improve organisational performance

A: Absorption costing means absorption of all cost of company. It allocates fixed overhead cost to the…

Q: In value chain analysis, what is the activity of arranging the delivery of products to customers…

A: Value chain analysis is an analysis that is done in business in order to evaluate value added…

Q: Managers must decide whether a product should be sold at splitoff or processed further. The sales…

A: Joint cost is the cost of assembling, that is incurred by an organization on a joint creation…

Q: In performing CVP analysis for a manufacturing company, what simplifying assumption is usually made…

A: Definition:  Cost-volume profit analysis: CVP analysis is a tool of cost accounting that measures…

Q: Management of Great Springs Bottled Water Company has asked you, the controller, to develop a…

A: In this question, we will make Income statement of Great Springs Bottled Water and find out the…

Q: Describe why sales and operations planning teams are cross fuxntions ?

A: Sales is basically concerned about exchange of a product or service for either any product, service…

Q: Describe how the dual-rate method is useful to division managers in decision making

A: Definition:   Dual rate method: The dual rate method is the method of allocation in which two…

Q: Describe the following approaches to pricing new products: skimming pricing, penetration pricing,…

A: Pricing decisions:   Pricing decisions is one of the most important and required decision for the…

Q: What are the stages in Product Life Cycle (PLC) of an product and define skimmimg pricing strategy.

A: Product life cycle defines the stages of an product with its various phases. Skimming is an pricing…

Q: Discuss cost functions and assess the importance of causality in estimating cost…

A: Cost Function which are explained in the cost Accounting which can be determine the mathematical…

Q: Management of Great Springs Bottled Water Company has asked you, the controller, to develop a…

A: Note: As per the policy we are supposed to solve one question at a time. Kindly repost the further…

Q: Management of Great Springs Bottled Water Company has asked you, the controller, to develop a…

A: When one department of a company transfer goods to another department, the price at which goods are…

Q: 1.  why companies need to transfer price and advantages?

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Cable Network System Bhd (CNS) is a supplier of equipment to telecommunication companies such as…

A: Hey, since there are multiple sub parts posted, we will answer first three subparts alone.

Q: How many cost pools should a company use when allocating costs to divisions, channels, and…

A: Cost Pool: The cost accountant makes individual group of all the indirect cost used in an item. The…

Q: The term Supply Chain Management refers to: Designing a product Designing, producing and delivering…

A: Supply chain management refers to the flow of goods right from procuring the raw materials to…

Q: Which item is usually not relevant to a decision by the divisional manager to reduce the transfer…

A: The opportunity cost are relevant cost by the manager to reduce the transfer price to meet a price…

Q: What considerations should managers make when deciding whether to sell a product as-is or after…

A: One of the decisions related to the product is to sell or process further. There are certain factors…

Q: Explain the concept of a product family and its relationship to value stream accounting.

A: Product family is the grouping of same kind of product and services which go through the same…