Answer:
the answer is 6
Explanation:
In this case we would need to have a combination of each plant with each customer. So the variable would be in this way (3C X 2P)
Customer1 Customer2 Customer3
Plant1 P1C1 P1C2 P1C3
Plant2 P2C1 P2C2 P2C3
Once you have this you can calculate the best combination to minimize the cost of shipping
Answer:
The maximum transfer price would be $50.
Explanation:
The maximum transfer price is nothing but the market price for the product , which is the most simple way to derive a transfer price . Here by selling the components of aircraft engines at market price, there are very good chances of high profits to be earned. So the maximum transfer price should be $50.
Answer:
Check the following explanation.
Explanation:
The goals of managers and shareholders are not always aligned. Agency theory suggests this misalignment creates the need for costly monitoring through compensation contracts.
To align the goals of the two parties,compensation contracts should be designed to motivate the executive to make decisions that will not only increase his or her wealth, but will also increase shareholder wealth. Steps taken to increase shareholder wealth should be reflected in improved firm performance.Including both components in the contracts helps ensure the decisions of the executive are linked to various time horizons.
Shortterm components motivate the executive to make decisions that have an immediate affect on the firm. Long-term components are necessary to lengthen the decision horizon of the executive and enhance the likelihood of continued improvement in firm value. The long-term incentives in these contracts can be based on improved shareholder wealth as well as improved firm performance.
Answer:
The unrealised profit (PURP) of $5,000 [ (125,000 * .20) * (.2) ] should be subtracted from the profit share of Non-Controlling Interest.
Explanation:
When we prepare consolidated financial statements, we treat the companies of group as a single entity. That's why the intra-group transactions must be removed the consolidated statements. This involve adjustment of current accounts, unrealised profit on sale of goods/non-current asset, loan given by one group company to another etc.
When goods are sold by one group company to another at a markup and the buyer has not yet sold it to the third party, then the markup (profit) loading on these items is unrealised from group's point of view. This needs to be removed from the consolidated accounts because no one can make profit by trading with himself. This profit is termed as realised when the goods are sold to the third party. In the individual accounts, profit on this transaction has a credit balance so to remove it we debit the "cost of goods sold of group" and a credit entry to it is made to "inventory". This credit entry to inventory bring down the balance of inventory to what was the cost of that inventory to the group. Moreover, the recording of revenue by seller and inventory by buyer on intra-group sales and purchase is also adjusted.
After all the adjustments are made, the profit is distributed between parent's retained earnings and non-controlling interest. Now if the seller of goods is subsidiary, like in this case, the amount of unreaslised profit is deducted from NCI's profit share to calculate the profit attributable to parent's retained earnings.
Answer:
0.536
Explanation:
The computation of the correlation coefficient is shown below:-
Therefore for computing the correlation coefficient between the returns on A and B we simply applied the above formula.
So, according to the question the option is not available. The right answer is 0.536 and the same is not considered
