Explain - based on the prerequisites for costless information and asymmetric information - the concept of transfer pricing. Also explain the mentioned methods for determining transfer prices. Advantages and disadvantages should also be explained
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Explain - based on the prerequisites for costless information and asymmetric information - the concept of transfer pricing. Also explain the mentioned methods for determining transfer prices. Advantages and disadvantages should also be explained |
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- (3)quantitative reliblities,relationship between cybercrime and ecommerce development.Many companies that have profit centres and/or investment divisions in different countries use transfer pricing to manage their profitability as a strategy to reduce tax payments. QUESTIONS Define the term transfer pricing Explain four (4) reasons why determining a fair transfer price is important to division managers. Discuss the propriety of using transfer pricing strategies to influence profitability.Question We have discussed the issue of transfer pricing in decentralized, multinational firms. REQUIRED: What is meant by transfer pricing? What are the two main reasons for transfer pricing? We have discussed three alternative transfer pricing models. Identify the three models. For each reason identified in #2 above, identify- and explain which transfer pricing model would be most useful.
- Mr.Abdullah specializes on Arbitrage trading. He has got the following quotes regarding 3 currencies GBP 0.739541 / USD AUD 1.3081 / USD GBP 0.563789 / AUD Now he wants to use USD 1000000 and make a profit. Answer the following questions based on the data given above. After converting from USD to GBP and from GBP to AUD, How much will he get in converting AUD to USD in the above process? a. 1715879 b. 1002777.804 c. 739541 d. All the options are wrong e. 1311733.645 After converting from USD to GBP, How much will he get in converting GBP to AUD? a. 739541 b. 1002777.804 c. 416945 d. None e. 1311733.645 How much will he get in converting USD 1000000 to GBP? a. 1311733.645 b. 1002777.804 c. None d. 739541 e. 1352190 Which cross rate should he calculate and compare with actual quotes to make sure that he will get profit a. GBP/AUD b. USD/AUD c.…Economics Apply the cost-volume- utility model for the graphical and mathematical definition of the equilibrium point. A company dedicated to the manufacture of its only product, a waterproof bluetooth speaker, presents the following information: Annual fixed costs: $1,500,000 Variable costs per unit: Housing: $20.- Buttons: $5.- Card: $10.- The sale price is calculated based on a desired marginal contribution of 60%. Calculate the equilibrium point in units and weights of the company, Draw up the corresponding graph, Prepare the status of results as a check.Economics Apply the cost-volume- utility model for the graphical and mathematical definition of the equilibrium point. A company dedicated to the manufacture of its only product, a waterproof bluetooth speaker, presents the following information: Annual fixed costs: $1,500,000 Variable costs per unit: Housing: $20.- Buttons: $5.- Card: $10.- The sale price is calculated based on a desired marginal contribution of 60%. Calculate the equilibrium point in units and weights of the company, Draw up the corresponding graph, Prepare the status of results as a check. B
- Which is NOT a reason for a supplier to offer trade credit to a manufacturer? a. To increase the market share b. To increase the available working capital c. To benefit from dynamic discounting d. To decrease the cash conversion cycleDiscuss the propriety of using transfer pricing strategies to influence profitabilityDefine Carriage of goods and discuss its types in detail
- Consider the table of prices and the quantity demanded by Rolando Mota whose behavior has been observed in five different combinations of price and rents. Construct the cost table of each basket at prices of each period and determine if Rolando's behavior is compatible with maximizing behavior. Period/Basket p1 p2 х1 x2 Basket cost 1 (A) 1 1 5 35 Period A B D E 2 (B) 1 2 35 10 1 3 (C) 1 1 10 15 2 4 (D) 3 1 15 3 5 (E) 1 2 10 10 5Suppose that: i. The spot price of oil is US$90 ii. The quoted 1-year futures price of oil is US$75 iii. The 1-year US$ interest rate is 5% per annum iv. The storage costs of oil are 1% per annum Is there an arbitrage opportunity? If so, explain the strategy that you will follow.Rule 5: transfer of property in unascertained and future goods by description and goods are unconditionally appropriated to the contact. where in pursuance of the contract the seller delivers the goods to the buyer or to a carrier to a dispatch to the buyer. Could you please explain me in simple words the meaning of this rule please?