number 17 please. others would be nice. 16) Ginger Corporation and Chippy Corpor
ID: 2519074 • Letter: N
Question
number 17 please. others would be nice.
16) Ginger Corporation and Chippy Corporation are movie companies. Comparative data for 20x4 16) and 20X5 are given below: Ginger Chippy $4,400,000- 1,3) /5500 Sales revenue 20x4 20XS $8,400,000 9,600,000 6,200,000 Number of employees 8,000 9,000 20X4 7,000 Assume that each 20X4 dollar is equivalent to 1.30 of each 20X5 dollar, due to inflation. Taking inflation into account, what is Chippy Corporation's 20x4 productivity measure in terms of revenue per employee? A) $1,040.00 B) $1,328.57 C) 5800.00 D) $885,71 17) If market prices are not available for transfer prices, most companies use B) calculatecd transfer prices. 17) D) negotiated A) cost-based C) estimated 18) A popular approach to performance measurement that integrates financial and nonfinancial measures and links them to the organization's goals and objectives is called the )balanced scorecard C) TQM approach B) quality control approach D) balanced contribution approach 19) The following information is available for the Peter Company- Sales $150,000 Invested capital Return on investment 10% No. 156,2502 15,6 What is the return on sales? A) 62.50% B) 100.00% C) 10.00% D) 10 20) 20) The following information pertains to Alan Company 15p s100,000 Total assets Total current liabilities Total expenses Total liabilities Total revenues 30,000 60,000 35,000 80,000 What is the returm on investment? C)60% Invested capital is defined as total assets. D)20% A) 160% B)70% 160Explanation / Answer
ANS :-17-->> B:- COST - BASED TRANSFER PRICE
THERE ARE THREE METHODS TO ESTABLISHING TRANSFER PRICES :-
1:- MARKET - BASED TRANSFER PRICE
2:- COST - BASED TRANSFER PRICE
3:- NEGOTIATED TRANSFER PRICE
EXPLANATION:-
1:- MARKET - BASED TRANSFER PRICE :- In the presence of competitive and stable external markets for the transferred product, most of the firms use the external market price as the transfer price.
2:- COST - BASED :- • After market prices most of the companies uses cost based method .
• A cost-based transfer price requires ,Actual cost or budgeted (standard) cost and also Full cost or variable cost.
3 :- NEGOTIATE :- A companies uses negotiate method but only if senior management does not specify the transfer price. Rather, divisional managers negotiate a mutually-agreeable price.
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