Please answer fast Internal transaction costs include administrative costs associated with coordinatingeconomic activity between different business units of the same corporation. It tendstowith organizational size and complexity.decreasebe eliminatedbecome external transaction costsincrease

Internal Transaction Cost is the Cost incurred on the exchange within the organization. In other…

Answered: İnternal transaction costs include…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 17MC: Internal costs that are charged to the segments of a business are called_______. A. controllable...

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Similar questions

Which of the following does not describe a management control system? A. establishes a companys strategic goals B. implements a companys strategic goals C. monitors a companys strategic goals D. a system that only measures profitability
Managers in decentralized organizations make decisions relating to all of the following except_______. A. the companys stock price B. equipment purchases C. personnel D. prices to charge customers
Which of the following is nor a common goal of an organization? A. operational efficiency B. being acquired by another business C. achieving strategic goals D. measuring financial performance
Internal costs that are charged to the segments of a business are called_______. A. controllable costs B. variable costs C. fixed costs D. allocated costs
In a decentralized accounting system, a company that gives a manager responsibility over revenues, costs, and investment in assets is organized as what type of responsibility center? Group of answer choices cost center profit center investment center none of these
Differentiate between centralized and decentralized operations. In a decentralized company in which the divisions are organized as investment centers, how could a division be considered the least profitable even though it earned the largest amount of income from operations?
Which of the following are characteristics of economic agents?a. They participate in economic events, but do not assume control of the resources.b. They participate in economic events, but not in support events.c. Internal agents are employees of the company whose system is being modeled.d. External agents are not employees of the company whose system is being modeled.e. All of the above describe agents.
Which of the following does not describe a management control system? OA. A system that only measures profitability OB. Implements a company's strategic goals OC. Establishes a company's strategic goals OD. Monitors a company's strategic goals
Differentiate between centralized and decentralized operations. Differentiate between a profit center and an investment center. Weyerhaeuser developed a system that assigns service department expenses to user divisions on the basis of actual services consumed by the division. Here are a number of Weyerhaeuser's activities in its central Financial Services Department: Payroll Accounts payable Accounts receivable Database administration—report preparation What is the major shortcoming of using income from operations as a performance measure for investment centers? In a decentralized company in which the divisions are organized as investment centers, how could a division be considered the least profitable even though it earned the largest amount of income from operations? How does using the return on investment facilitate comparability between divisions of decentralized companies?
How can organizations effectively measure and maximize the financial contribution of their various departments or business units to overall company performance and profitability?
Why are companies divided into departments for the purpose of management control? What are some of the challenges to preparing departmental reports? Is it possible to evaluate a cost center's profitability?
Corporate governance is defined as "the set of laws, rules, and procedures that influence the company's operations and the decisions its managers make." Agency costs are "the reductions in a company's value due to actions by agents (managers), including the costs principals (shareholders) incur (such as monitoring costs) trying to modify their agents' behaviors." Corporate governance provisions are set in place as way to help minimize the agency conflict within a firm. Not one provision alone completely eliminates the potential for all agency conflict. As a result, multiple governance provisions are typically in place at a firm to help minimize the risk. The book lists 5 common internal governance provisions: monitoring and discipline (threat to fire) by the board of directors charter provisions and bylaws that affect the likelihood of hostile takeovers (remember that in general: shareholders like hostile takeovers, managers do not) compensation plans capital structure choices…

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İnternal transaction costs include administrative costs associated with coordinating economic activity between different business units of the same corporation. It tends to with organizational size and complexity. decrease be eliminated O become external transaction costs increase