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Q. What do you mean by Dual pricing?
Dual transfer pricing means setting one transfer price for the internal seller and another transfer price for the internal buyer. The basic idea is to encourage trade by creating the most beneficial price for both parties.
The difference between the two transfer prices would need reconciling by head office when preparing the group consolidated financial results. Dual pricing is a similar approach to the opportunity cost approach which is discussed later.
Differences of EVA and RI EVA uses the replacement not historical accounting cost of assets. Profit calculated under both methods are different e.g. with EVA the repla
Q. Common aims of transfer pricing systems? The common aims of transfer pricing systems Motivate mangers: A transfer price ensures an internal cost is recognised by
Q. Show the Limitations of ratio analysis ? A ratio on its own is meaningless, accounting ratios must always be interpreted in relation to other information. Ratios based on h
Q. Limitations of using balanced scorecard? - Historical performance analysis is no guide to the future. - Manipulation or 'massaging' of performance measures by management,
Q. Aim of a transfer pricing system? Aim of a transfer pricing system could be tax avoidance Different countries have varying tax rates. A multi-national company can set up su
Q. Divisional structures – product organisation? The functional structure is normally adopted by an entrepreneurial structure e.g. small business, because the organisation grow
Develop Strategic Plan This assessment requires that you analyse the capabilities of an organisation and develop a strategic plan. To enable you to do this you must complete t
Taking into account the industry dynamics and characteristics of the automotive industry, discuss the rationale (reasons for)the collaborative partnership between Renault, Nissan a
groups and or teams will solve effectiveness and efficiency in 21st organisations.discuss
what are the issues in a global environment
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