Which of the following statements is not correct regarding Local Plus? - Local Plus is especially suited to middle management who show willingness to relocate. - Local Plus is a hybrid version of the balance sheet (home-based) and going rate (host-based) approaches. - Local Plus is used for long-term assignments. - Local plus is the driving force behind cost savings in international assignments. - Local plus is especially suited for temporary transfers.
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Which of the following statements is not correct regarding Local Plus?
- Local Plus is especially suited to middle management who show willingness to relocate.
- Local Plus is a hybrid version of the balance sheet (home-based) and going rate (host-based) approaches.
- Local Plus is used for long-term assignments.
- Local plus is the driving force behind cost savings in international assignments.
- Local plus is especially suited for temporary transfers.
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- 1. Explain the concept of performance evaluation and control system.2. Enumerate the advantages of performance evaluation and control system.3. Explain the rationale of transfer pricing.4. What is return on investment, and how is it calculated?5. What are the advantages and limitations of return on investment?6. What are the measurement issues to be concerned about when using return on investment?7. Define productivity.8. Why is it important for a firm that follows a strategy of being the cost leader to improve productivity?9. What is incentive compensation?10. What type of organization is best suited to incentive compensation plans?Among the best things to do to maintain firm value is to: a. Improve sales at all costs b. Spend as much as possible on public relations and marketing C. Economize on employee training programs d. In so far as possible, make costs reactive to sales e. Wait until the last moment to pay billsAnswer the following questions in multiple-choice answers: 1. The book value of the equipment currently owned by a firm is an example of a(n): a. future cost. b. differential cost. c. comparative cost. d. opportunity cost. e. sunk cost. 2. An accounting information system should be designed to provide information that is useful. To be useful the information must be: a. qualitative rather than quantitative. b. unique and unavailable through other sources. c. historical in nature and not purport to predict the future. d. marginal between two alternatives. e. relevant, accurate, and timely. 3. Factors in a decision problem that cannot be expressed in numerical terms are: a. qualitative in nature. b. quantitative in nature. c. predictive in nature. d. sensitive in nature. e. uncertain in nature. 4. An opportunity cost may be described as: a. a foregone benefit. b. a historical cost. c. a specialized…
- Many organisations use transfer pricing when transferring products between different divisions of the same organisation. You are required to critically discuss the advantages and disadvantages of two of the following methods: 1) Market based transfer prices; (Note: define, explain gives examples, advantages and disadvantages) 2) Full cost transfer prices; 3) Cost-plus a mark-up transfer prices; and 4) Negotiated transfer prices.Price accuracy and right product offering are important aspect of an efficient order-to-cash (OTC). How can it be achieved with a properly managed OTC? What are your suggestions? Why? (Explain in min. 3-4 sentences.)Compute for the joint cost allocated to Reta. (SOLUTIONS MUST BE IN GOOD ACCOUNTING FORM. EXCEL FORM WOULD BE GREAT. ACCOUNT TITLES ON THE LEFT, AMOUNTS ON THE RIGHT. USE TABLE IF NECESSARY. AVOID PARENTHETICAL SOLUTIONS. THANKS, A LOT!)
- Question 2 A seminar was recently attended by the Managing Director of XYZ Manufacturing Company Limited located at Sheffield. The focus of the seminar was "optimising scarce resources utility in a manufacturing setting with particular reference to linear programming". On his return to his base, he called for a meeting with the Management to share his experience from the seminar and the impact this will have on the decision by the Board to produce two major products in the years ahead. A group of external research experts had previously been commissioned and the following represents information from the research carried out by them The expected products are "Best" and "Smart" with expected costs statistics as follows: Best £ £ Smart (3kg@£50/kg) Material costs (5kg@£50/kg) 250 150 Labour costs Machinery time 30 (4 hours @£15/Hr) 60 (4 hours @£10/hr) 40 (2hours @£15/Hr) (5hours@£10/Hr) Other Processing Time 50 The applicable pricing policy is based on total cost of production plus 20%…Change is made by 1. реople 2. systems 3. processes 4. tools 5. external forces The duration and structure of change initiatives vary significantly, but all have a degree of complexity and 1. involve cost accounting and management accounting 2. are outside the normal daily workload 3. monitor resources, costs, quality and budget 4. vary the structure and duration 5. require equity sources of fundingANSWER TRUE OR FALSE Transfer prices can be used to promote goal congruence among operating segments of an organization. In computing a transfer price, the maximum price should be no higher than the lowest market price at which the buying segment can obtain the good or service externally. In computing a transfer price, the maximum price should be no higher than the highest market price at which the buying segment can obtain the good or service externally. In computing a transfer price, the minimum price should be no lower than the incremental costs associated with the goods plus the opportunity cost of the facilities used. One of the main factors to consider when using a cost-based transfer price is whether to use actual or standard costs. When using a negotiated transfer price, a decision must be made which market price to use. When using a market-based transfer price, a decision must be made which market price to use. When using a market-based transfer…
- In a decentralized organization, Co. X, Division A is evaluated according to ROI, while Division B is evaluated according to residual income. Of Co.X, Div. A and Div.B, which is more likely to make an investment decision that will hurt Co. X's income? a. Co. X b. Division A d. All are equally likely to do this 9. c. Division B 10. Division A, an investment center, has operating income = $80,000 for the prior period. The residual income during this period is $20,000. If Division A’s investment assets = $300,000, then cost of capital set by the corporation's top management must be: a. 12%|c.20% b. 15% d. 25% 11. A division manager is considering investing in a new product. The division's income is currently $465,000 with operating assets of $8 million. The new product would increase income by $270,000 and would require an additional investment in equipment of $1.5 million. The ROI of the division before and after the investment is respectively: a. 5.8% and 7.7% c. 7.7% and 5.8% b. 11.6%…Give typing answer with explanation and conclusion 5. Which of the following statements is correct? A-- All the answers are correct. B-- A more direct method of calculating the DOL is to use the following equation is DOL = (Sales - Variable Costs)/EBIT. C-- Because the amount of debt is determined by managerial choice, the business risk that a firm faces is also determined by management. D-- Fixed costs are those costs that are expected to change at the same rate as the firm’s sales. E-- If a firm’s operating costs are all variable, then any variation in sales will be less than the variation in EBIT.Many organizations use transfer pricing when transferring products between different divisions of the same organisation. Critically discuss the advantages and disadvantages of the method: Negociated transfer price. Note: Define, explain gives examples and advantages and disadvantages