Multiple Chioce Quiz on Transfer Pricing

Multiple choice questions Try the multiple choice questions below to test your knowledge of Chapter 18. Once you have complete the test, click on Submit Answers for Grading to get your results. If your lecturer has requested that you send your results to them, please complete the Routing Information found at the bottom of your graded rogue and click on the E-Mail Results button. Pleasedo notforward your results unless your lecturer has specifically requested that you do so. This activity contains 10 questions. - Top of nervous strain When a perfectly competitive market exists and the firm uses market-establish transfer pricing, the firm prat achieve all of the following except for subunit performance evaluation. management effort. goal congruence. equipment casualty monopoly. Bob is the manager of the Beta division. He is accountable for only the sales generated by the division. Beta is a(n) court centre. profit centre. investment centre. ta x revenue centre. A company that uses a separate transfer price for each division in a single transaction is employing dual pricing. market-based pricing. negotiated pricing. full cost pricing. If the dispenseing subunit is operating at full capacity and can sell everything produced either internally or externally, it will only be free to use a transfer price set by cost plus a mark-up. the market. negotiation. variable costing. Optoca has 2 divisions, A and B. A makes a member for tables which it can sell only to course of study B. It has no other outlet for sales.Current information for the divisions is as follows incremental cost for sectionalization A degree centigrade additive cost for incision B cc Transfer price for component 175 Final Table selling price 425 The transfer price is based on 175% of incremental costs. What is the profit per table for Optoca? 50 75 one hundred fifty 125 Optoca has 2 divisions, A and B. A makes a component for tables which it can sell only to Division B. It has no other outlet for sales. Current information for the divisions is as follows Incremental cost for Division A 100 Incremental cost for Division B 200Transfer price for component 175 Final Table selling price 425 Unit sales ccc The transfer price is based on 175% of incremental costs. What is the amount of profit recognized by Division B? 15,000 45,000 22,500 37,500 Optoca has 2 divisions, A and B. A makes a component for tables which it can sell only to Division B. It has no other outlet for sales. Current information for the divisions is as follows Incremental cost for Division A 100 Incremental cost for Division B 200 Transfer price for component 175Final Table selling price 425 The transfer price is based on 175% of incremental costs. Acotpo has offered to sell Division B the same component it currently gets from Division A for 150 per unit. If Division B accepts Acotpos offer, the firm as a whole will be 25 per unit worse off. 25 per unit separate off. 50 per unit better off. 50 per unit worse off. Optoca has 2 divisions, A and B. A makes a component for tables which it can sell only to Division B. It has no other outlet for sales.Current information for the divisions is as follows Incremental cost for Division A 100 Incremental cost for Division B 200 Transfer price for component 175 Final Table selling price 425 The transfer price is based on 175% of incremental costs. Acotpo has offered to sell Division B the same component it currently gets from Division A for 150 per unit. Given this information, what is the minimum amount that Division A would be will to sell to Division B? 100 per unit. 150 per unit. 125 per unit. 175 per unit. If Minnico, which uses cost based transfer pricing, finds that Division A has costs of 100 per unit, and Division B has divisional costs of 125 per unit, what will Division B recognise as total cost per unit if the mark-up rate is 40%? 100 per unit. 265 per unit. 225 per unit. 140 per unit. Which transfer pricing method will preserve the subunit autonomy? Cost-based pricing. Negotiated pricing. Full-cost pricing. Variable-cost pricing. Bottom of Form