76. Gant Manufacturing Company has provided the following financial Information: Sales Variable Expenses Flxed Expenses investment in Fixed Assets$300,000 Required Rate of Return $400,000 $250,000 $50,000 5% What Is Gant's residual Income? A. $80,000. B. $95,000. C. $100,000. D. $85,000. E. None of the above. LO4-D 77. Which of the following is not a common approach to trensfer pricing? A. Varlable cost-based transfer prices. 8 Full cost-based transfer prices. C. Market-based transfer prices. D. Negotiated transfer prices. E. All of the above are common approaches to transfer pricing. LOLOS-E 78. What belief does EVA reflect concerning the responsibility of managers? A. Managers should be primarily responsible for investing in reseerch and development. B. Managers should be responsible for generating operating revenues and covering operating costs. Managers should be responsible for generating profits to cover both operating and capital costs. D. C. Managers should be responslble for generating an acceptable profit margin. LOS-Pretest-C 79. Which of the following is not a reason for using transfer pricing? A. Pre-tax profits of a corporation will be larger B. Divisional income evaluatlon C. Resource allocation among segments D. Tax planning at the corporate level LOS-Pretest-A 80. Which one of the following is not true about transfer pricing? A MNCs can transfer income from high-tax countries to low-tax countries. B. Transfer prices can be cost-based or market-based AnMNC er tering .newforeign market may want to enable lts subsidiary i acountry to compete effectively by charging a high transfer price. D. Most countries have no restrictions on foreign currency exchange LOS-Post test D 12-13