3
3
3
c 28. If income increases while sales and investment remain constant, which of the following is true?
a. Investment turnover increases.
b. ROS decreases.
c. ROI increases.
d. ROI could increase or decrease.
a 29. Which transfer price is ideal for the company when the selling division is at capacity?
a. Market price.
b. Incremental cost.
c. Budgeted full cost.
d. Actual variable cost plus a percentage profit.
c 30. From the standpoint of the company, the important question in transfer pricing is
a. what is fair to the divisions.
b. how to determine the profit of the divisions.
c. whether or not the transfer should take place.
d. when the transfer should be made.
a 34. Which of the following is true about transfer prices for sales between divisions located in different countries?
a. They should consider the tax structures in the two countries.
b. They are usually set by the governments of the two countries.
c. They cannot affect the total income of the company.
d. All of the above.
d 35. Multinational companies face special problems in which of the following areas of managerial practice?
a. Performance evaluation.
b. Transfer prices.
c. Allocating common costs.
d. All of the above.
Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.
Alternative Proxies: