Reference no: EM131335124
Accounting Assignment
Transfer Pricing Decisions
As a manager, you may be tasked with making recommendations as to how your organization should structure its transfer pricing. This is especially true in cases when both variable or full cost transfer pricing is acceptable, and the choice is not obvious.
For this Assignment, take a moment to review your course text. Reflect on the scenario presented and consider how transfer pricing decisions might apply to organizational decision making.
Phipps manufactures circuit boards in Division A, a country with a 30% income tax rate, and transfers them to Division B, a country with a 40% income tax. An import duty of 15% of the transfer price is paid on all imported products. The import duty is not deductible in computing taxable income. The circuit boards' full cost is $1,000 and variable cost is $700; they are sold by Division B for $1,200. The tax authorities in both countries allow firms to use either variable cost or full cost as the transfer price.
The Assignment:
• Part 1: Analyze the effect of both full-cost and variable-cost transfer pricing methods on Phipps' cash flows using a spreadsheet program such as Excel.
• Part 2: Make your recommendation as to how the organization should proceed, being sure to justify your recommendation with examples form this week's resources, and/or additional research. Complete this aspect of the Assignment by using a word processing program such as Word.
|
Scholarly activity-research methods
: How does this tool assist the marketing and management teams to solve problems within the company? Based upon your research and this SWOT analysis, what recommendations would you make for the management team?
|
|
Identify effective communication technique for communicating
: Address the appropriate use of social media at your place of business. Identify effective communication techniques for communicating electronically.
|
|
Explore the career path you want to take in criminal justice
: Write a 500-600 word paper on Criminal Justice Training & Development Opportunities. Think about and explore the career path you want to take in criminal justice
|
|
Recent article on lean manufacturing or six sigma
: Please write 600 Word Executive Summary of a recent article on Lean Manufacturing or Six Sigma that demonstrates respect for people or its relative to it.
|
|
Analyze effect of variable-cost transfer pricing methods
: Analyze the effect of both full-cost and variable-cost transfer pricing methods on Phipps' cash flows using a spreadsheet program such as Excel.
|
|
New internal organization
: In 2011, Nokia announced a strategic partnership with Microsoft, a new strategy and a new internal organization. Microsoft (2011) reported on the changes:
|
|
Does great literature convey its message clearly
: The last totur did it all wrong, so I have to redo it. It is about ''great literature", like famous literature of shakespeare, moby dick, not only "literarure". Discuss the great literature as a type in general, not any specific book.
|
|
Position in an organizational hierarchy
: Legitimate power belongs to someone who occupies a particular job, office, or position in an organizational hierarchy. Discuss the difference between power and authority
|
|
What does this phrase mean to you explain
: Discuss the phrase, "You can never gain 100 percent security, but you can lose 100 percent liberty." What does this phrase mean to you? Explain
|