The approach that required the transfer price to be less than the market price but greater...
The approach that required the transfer price to be less than the market price but greater than the supplying division's variable costs per unit is called the
cost price approach
market price approach
standard cost approach
negotiated cost approach
Homework Answers
Correct option is: negotiated cost approach
Negotiated cost approach is an approach in which bargaining is done between the buyer and seller of securities and the bargained price is less than the market price but it is usually greater than the supplying divisions variable cost i.e the cost incurred by supplying division so that cost is recovered and to make some profit. It is basically used in secondary market
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The approach that required the transfer price to be less than
the market price but greater...
if a bonds coupon rate is greater than market, then the bond will sell at price...
if a bonds coupon rate is greater than market, then the bond
will sell at price
QUESTION 3 If a bond's coupon rate is greater than market rate, then bond will sell at price than its face value; these are called bonds. less, discount less, premium more, premium more, discount Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All A
Decision on Transfer Pricing Materials used by the Instrument Division of XPort Industries are currently purchased...
Decision on Transfer Pricing Materials used by the Instrument Division of XPort Industries are currently purchased from outside supplers at a cost of $210 per unit. However, the same materials are available from the Components Division. The Components Division has unused capacity and can produce the materials needed by the Instrument Division at a variable cost off $160 per unit. Assume that a transfer price of $190 has been established and that 60,000 units of materials are transferred, with no...
Determining Market-Based and Negotiated Transfer Prices Carreker, Inc., has a number of divisions...
Determining Market-Based and Negotiated Transfer Prices Carreker, Inc., has a number of divisions, including the Alamosa Division, producer of surgical blades, and the Tavaris Division, a manufacturer of medical instruments. Alamosa Division produces a 2.6 cm steel blade that can be used by Tavaris Division in the production of scalpels. The market price of the blade is $21. Cost information for the blade is: Variable product cost $ 9.30 Fixed cost 5.30 Total product cost $14.60 Tavaris needs 18,000 units...
Please explain the answer clearly the topic of these questions above is Transfer Price. Assume 200...
Please explain the answer clearly
the topic of these questions above is Transfer
Price.
Assume 200 barrels are transferred from the Production Division to the Refining Division for a transfer price of $6 per barrel. The Refining Division sells the 200 barrels at a price of $40 each to customers. What is the operating income of both divisions together? - a. $2,400- b. $2,600 $3,600 - d. $6,800 soo Answer: b Revenues = ($40 x 200)= Cost = ($3 +...
APPLY THE CONCEPTS: Determining benefits of negotiated transfer price Assume that Selling Division and Buying Division...
APPLY THE CONCEPTS: Determining benefits of negotiated transfer price Assume that Selling Division and Buying Division are both owned by Overall Corporation. Selling Division sells a product that is used by Buying Division and outside customers. Selling Division has 22,000 units of excess capacity. Selling Division currently sells the product for $80 per unit and Buying Division currently buys 22,000 units of the product from an outside source for $80 per unit. Variable costs of the product are $16, of...
Determining Market-Based and Negotiated Transfer Prices Carreker, Inc., has a number of divisions, including the Alamos...
Determining Market-Based and Negotiated Transfer Prices Carreker, Inc., has a number of divisions, including the Alamosa Division, producer of surgical blades, and the Tavaris Division, a manufacturer of medical instruments. Alamosa Division produces a 2.6 cm steel blade that can be used by Tavaris Division in the production of scalpels. The market price of the blade is $25. Cost information for the blade is: Variable product cost $ 9.70 Fixed cost 5.30 Total product cost $15.00 Tavaris needs 18,000 units...
Determining Market-Based and Negotiated Transfer Prices Carreker, Inc., has a number of divisions, including the Alamosa...
Determining Market-Based and Negotiated Transfer Prices Carreker, Inc., has a number of divisions, including the Alamosa Division, producer of surgical blades, and the Tavaris Division, a manufacturer of medical instruments. Alamosa Division produces a 2.4 cm steel blade that can be used by Tavaris Division in the production of scalpels. The market price of the blade is $22. Cost information for the blade is: Variable product cost $ 9.40 Fixed cost 5.60 Total product cost $15.00 Tavaris needs 20,000 units...
Setting Transfer Prices-Market Price versus Full Cost Ardmore, Inc., manufactures heating and air conditioning units in...
Setting Transfer Prices-Market Price versus Full Cost Ardmore, Inc., manufactures heating and air conditioning units in its six divisions. One division, the Components Division, produces electronic components that can be used by the other five. All the components produced by this division can be sold to outside customers; however, from the beginning, about 70 percent of its output has been used internally. The current policy requires that all internal transfers of components be transferred at full cost. Recently, Cynthia Busby,...
Capacity in units Selling price to outside customers on the intermediate market Variable costs per unit...
Capacity in units Selling price to outside customers on the intermediate market Variable costs per unit Fixed costs per unit (based on capacity) 270,000 $20 $ 12 $ 9 The company has a Pump Division that could use this valve in the manufacture of one of its pumps. The Pump Division is currently purchasing 15,000 valves per year from an overseas supplier at a cost of $19 per valve 1. Assume that the Valve Division has ample idle capacity to...
Transfer Pricing The materials used by the Multinomah Division of Isbister Company are currently purchased from...
Transfer Pricing The materials used by the Multinomah Division of Isbister Company are currently purchased from outside suppliers at $90 per unit. These same materials are produced by the Pembroke Division. The Pembroke Division can produce the materials needed by the Multinomah Division at a variable cost of $75 per unit. The division is currently producing 120,000 units and has capacity of 150,000 units. The two divisions have recently negotiated a transfer price of $82 per unit for 15,000 units....
if a bonds coupon rate is greater than market, then the bond
will sell at price
QUESTION 3 If a bond's coupon rate is greater than market rate, then bond will sell at price than its face value; these are called bonds. less, discount less, premium more, premium more, discount Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All A
Decision on Transfer Pricing Materials used by the Instrument Division of XPort Industries are currently purchased from outside supplers at a cost of $210 per unit. However, the same materials are available from the Components Division. The Components Division has unused capacity and can produce the materials needed by the Instrument Division at a variable cost off $160 per unit. Assume that a transfer price of $190 has been established and that 60,000 units of materials are transferred, with no...
Please explain the answer clearly
the topic of these questions above is Transfer
Price.
Assume 200 barrels are transferred from the Production Division to the Refining Division for a transfer price of $6 per barrel. The Refining Division sells the 200 barrels at a price of $40 each to customers. What is the operating income of both divisions together? - a. $2,400- b. $2,600 $3,600 - d. $6,800 soo Answer: b Revenues = ($40 x 200)= Cost = ($3 +...
APPLY THE CONCEPTS: Determining benefits of negotiated transfer price Assume that Selling Division and Buying Division are both owned by Overall Corporation. Selling Division sells a product that is used by Buying Division and outside customers. Selling Division has 22,000 units of excess capacity. Selling Division currently sells the product for $80 per unit and Buying Division currently buys 22,000 units of the product from an outside source for $80 per unit. Variable costs of the product are $16, of...
Determining Market-Based and Negotiated Transfer Prices Carreker, Inc., has a number of divisions, including the Alamosa Division, producer of surgical blades, and the Tavaris Division, a manufacturer of medical instruments. Alamosa Division produces a 2.6 cm steel blade that can be used by Tavaris Division in the production of scalpels. The market price of the blade is $25. Cost information for the blade is: Variable product cost $ 9.70 Fixed cost 5.30 Total product cost $15.00 Tavaris needs 18,000 units...
Setting Transfer Prices-Market Price versus Full Cost Ardmore, Inc., manufactures heating and air conditioning units in its six divisions. One division, the Components Division, produces electronic components that can be used by the other five. All the components produced by this division can be sold to outside customers; however, from the beginning, about 70 percent of its output has been used internally. The current policy requires that all internal transfers of components be transferred at full cost. Recently, Cynthia Busby,...
Capacity in units Selling price to outside customers on the intermediate market Variable costs per unit Fixed costs per unit (based on capacity) 270,000 $20 $ 12 $ 9 The company has a Pump Division that could use this valve in the manufacture of one of its pumps. The Pump Division is currently purchasing 15,000 valves per year from an overseas supplier at a cost of $19 per valve 1. Assume that the Valve Division has ample idle capacity to...
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