Apply transfer pricing rules best practices inc is a

Assignment Help Accounting Basics
Reference no: EM13609973

Apply Transfer Pricing Rules Best Practices, Inc., is a management consulting firm. Its Corporate Division advises private firms on the adoption and use of cost management systems. Government Division consults with state and local governments. Government Division has a client that is interested in implementing an activity-based costing system in its public works department. The division's head approached the head of Corporate Division about using one of its associates. Corporate Division charges clients $450 per hour for associate services, the same rate other consulting companies charge. The Government Division head complained that it could hire its own associate at an estimated variable cost of $150 per hour, which is what Corporate pays its associates. Required a. What is the minimum transfer price that Corporate Division should obtain for its services, assuming that it is operating at capacity? b. What is the maximum price that Government Division should pay? c. Would your answers in (a) or (b) change if Corporate Division had idle capacity? If so, which answer would change, and what would the new amount be?

Reference no: EM13609973

Questions Cloud

Your company in the midwest has corn and grain warehouses : your company in the midwest has corn and grain warehouses in kansas city omaha and des moine. you ship commodities to
A beam of accelerated protons from the large hadron : a beam of accelerated protons from the large hadron collider can be used to spray paint an insulator with protons.
Evaluate transfer pricing system seattle transit ltd : evaluate transfer pricing system seattle transit ltd. operates a local mass transit system. the transit authority is a
Assuming a fica tax rate of 8 on the first 100000 in wages : assuming a fica tax rate of 8 on the first 100000 in wages and a federal income tax rate of 20 on all wages what would
Apply transfer pricing rules best practices inc is a : apply transfer pricing rules best practices inc. is a management consulting firm. its corporate division advises
At the top of the loop what is the magnitude of the force : at the top of the loop what is the magnitude of the force exerted on a 55kg rider by the roller-coaster seat?nbspat the
Explain how to contruct an unadjusted trial balance and : explain how to contruct an unadjusted trial balance and provide an example of the application of the debit credit rules
If the impact force varies with time as shown in the plot : the rubber mallet is used to drive a cylindrical plug into the wood member. if the impact force varies with time as
The distribution of heights of adult men in the us is : the distribution of heights of adult men in the u.s. is approximately normal with mean 69 inches and standard deviation

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Compute the current ratio for each year

Compute the current ratio for each year and comment on your results - balance sheets of Bob Evans Farms

  The beginning cash balance is not included on the cash

the beginning cash balance is not included on the cash budget because the cash budget deals exclusively with cash flows

  Depaulis furniture manufacturers makes unfinished furniture

depaulis furniture manufacturers makes unfinished furniture for sale to customers from its own stores. recently the

  When you have learned enough about the two chart types you

when you have learned enough about the two chart types you selected return to our discussion and answer the following

  Kansas industries makes soy oil and soy meal from soy in a

kansas industries makes soy oil and soy meal from soy in a joint process. the soy oil can be further processed into

  Last year the house of orange had sales of 826650 net

last year the house of orange had sales of 826650 net operating income of 81000 and operating assets of 84000 at the

  The draper company is considering dropping its doombug toy

1. devlin company has two divisions c and d. the overall company contribution margin ratio is 30 with sales in the two

  Overhaul trucks at a significant cost

The company completely overhauled 10 of its trucks at a significant cost. The overhaul should extend the life of the trucks by at least 3 years. Because the company performs similar overhauls each year, the cost has been properly charged to repair..

  Considerations and risks when outsourcing

What are at least 5 considerations you will need to take into account when you make a make-decision versus a buy decision at some point in the future? Explain at least 5 reasons why these risk are important to consider.

  Provide an analysis to determine the relative product

atlas steel company produces three grades of steel high good and regular grade. each of these products grades has high

  Willkom corporation bought 100 percent of szabo inc on

willkom corporation bought 100 percent of szabo inc. on january 1 2009 at a price in excess of the subsidiarys fair

  On january 1 a company purchased a five-year insurance

on january 1 a company purchased a five-year insurance policy for 1800 with coverage starting immediately. if the

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd