20) The marginal tax rate for a company is the 20) A) lowest tax rate that may be imposed on the company by IRS B) average tax rate for the company C) tax rate paid on additional amounts of pretax income D) highest possible tax rate that may be imposed on the company by IRS TRUE/FALSE. Write 'T' if the statement is true and "F' if the statement is false. 21) Two common methods for comparing alternative investments are the total project approach and 21) the conversion approach. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 22) Division AA does not have excess capacity to produce Product XX. The division can sell Product 22) XX for $10 per unit outside the company. Variable costs are $6 per unit. Division BB wants to purchase Product XX from Division AA to use in Product ZZ. The selling price of Product ZZ is $25 per unit and variable costs to finish the product after the transfer are $12 per unit. An outside supplier will sell Product XX for $12 per unit. What is the minimum transfer price for Division AA? A) $6 per unit B) $4 per unit C) $10 per unit D) $12 per unit TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false. 23) In a multinational setting, low transfer prices generally lead to low import duties. 23) MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 24) To calculate economic value added, several adjustments are made to after tax operating profit that 24) include_ and A) taxes paid rather than tax expense; capitalization of research and development costs B) the use of LIFO inventory valuation; capitalization of research and development costs C) the use of average cost inventory valuation; current costs of fixed assets D) the use of LIFO inventory valuation; current costs of fixed assets 25) Decentralization may increase a firm's costs because 25) A) information costs rise as top management needs additional reports to learn about decentralized units B) lower level managers may make decisions that are not in the best interests of the firm as a whole C) lower level managers duplicate services that may be less expensive if centralized D) all of the above 26) When a company uses economic profit as a performance metric, managers have an incentive to 26) invest only in projects A) earning less than the cost of capital of the segment or division B) earning less than the return on investment of the segment or division C) earning more than the cost of capital of the segment or division D) earning more than the return on investment of the segment or division