Question 6
An organization's transfer pricing system involves:
* The transferring division receiving $20 per unit; an amount equal to its variable costs.
* The receiving division paying an additional $30,000 every month to the transferring division.
Which transfer pricing system is the organization using?
* The transferring division receiving $20 per unit; an amount equal to its variable costs.
* The receiving division paying an additional $30,000 every month to the transferring division.
Which transfer pricing system is the organization using?
Question 7
When making an investment decision, which THREE of the following are reasons why receiving $1 today is preferable to receiving $1 in the future?
Question 8
Which TWO of the following conditions are necessary for a learning curve to apply?
Question 9
A company comprises several divisions.
One of these divisions was originally expected to earn an operating profit next year of $800,000 on net assets of $4 million.
However, the divisional manager is considering investing in a project that would generate a project return on investment (ROI) of 38% on additional net assets of $500,000.
What would be the divisional ROI next year if the project was implemented?
Give your answer to the nearest percentage.
One of these divisions was originally expected to earn an operating profit next year of $800,000 on net assets of $4 million.
However, the divisional manager is considering investing in a project that would generate a project return on investment (ROI) of 38% on additional net assets of $500,000.
What would be the divisional ROI next year if the project was implemented?
Give your answer to the nearest percentage.
Question 10
Place each method of analysing risk and uncertainty against the statement that describes it correctly.
