Questions from Management Accounting

Q: Suppose transfer prices are set at market prices and a manager who

Suppose transfer prices are set at market prices and a manager who previously purchased internally begins to purchase externally. Explain what it means to say that the outsourcing decision might have...

Q: Describe as many different methods for setting transfer prices as you can

Describe as many different methods for setting transfer prices as you can.

Q: Cost allocation has no impact on the transfer price set. Discuss

Cost allocation has no impact on the transfer price set. Discuss.

Q: Search online for two organisations that have used life cycle costing.

Search online for two organisations that have used life cycle costing. Briefly comment on what you find in relation to this practice.

Q: 'Transfer pricing is a waste of an entity’s resources; it all

'Transfer pricing is a waste of an entity’s resources; it all gets eliminated on consolidation'. Discuss.

Q: Why do you consider that taxation authorities require an international transfer

Why do you consider that taxation authorities require an international transfer price to be set based on an arm’s length transaction?

Q: At a recent management meeting at Skyward Industries, the Transport Division

At a recent management meeting at Skyward Industries, the Transport Division manager was heard to say “this transfer pricing is a waste of time – at the end of the year all the internal transactions a...

Q: Explain why organisational form may vary if specific knowledge versus general knowledge

Explain why organisational form may vary if specific knowledge versus general knowledge is needed for decision making.

Q: Identify the four different types of responsibility centres and explain the general

Identify the four different types of responsibility centres and explain the general objectives of each.

Q: A national company, Fast Print, decided to expand into several

A national company, Fast Print, decided to expand into several developing countries. The company has been managed under a centralised organisational form, but is considering changing to a decentralise...