Why would standard cost be a more appropriate transfer cost between cost centers than actual cost?

Question:

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Accounting

ISBN: 978-0324662962

23rd Edition

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

See More Books

Question Posted: Dec 11, 2011 04:40 AM

See More Questions

Why are cost centers considered to be more appropriate than profit centers for production departments?
Why is the actual cost of borrowing usually lower than the stated rate of interest that the borrower pays to a lender such as a bank? Can you think of a situation where the actual cost of borrowing...
Why would it be more appropriate to hire a paralegal than an attorney if an attorney is capable of performing the required work, attending court appearances, and bearing responsibility for any errors?
It was reported that 23% of U.S. adult cellphone owners called a friend for advice about a purchase while in a store. If a sample of 15 U.S adult cellphone owners is selected, what is the probability...
Oilco Canada Limited sells refined petroleum products. The company's balance sheet includes reserves of oil assets. Suppose Oilco paid $15 million cash for an oil lease that contained an estimated...
In Exercises find the point on the graph of the function that is closest to the given point. f(x) = x, (2, 1)
Explain the analysis of a firm's solvency. (p. 432) LO.1
Beckett Corporation realized $800,000 of taxable income from the sales of its products in States A and B. Beckett's activities establish nexus for income tax purposes in both states. Beckett's sales,...
Who the follow on to the tree 213 O No eflect Increase O Decrease. o It can increase or decrease. It cannot be determined from the information provided al Support-LogMeIn...exe RI earch hp
A 8 m3 fermenter is operated continuously with feed substrate concentration 10 kg.m-3. The microorganism cultivated in the reactor has the following characteristics: max= 0.3 h-1, Ks =0.1 kg.m-3....
When is the negotiated price approach preferred over the market price approach in setting transfer prices?
When using the negotiated price approach to transfer pricing, within what range should the transfer price be established?
Research the impact of childhood trauma and exposure to violence as it relates to increased risk of delinquency. You can further focus this on females in the juvenile justice system or at risk for...
Because her insurance agency is in a lakeside community, Adriana always asks her homeowners clients what boating activities they engage in, and she is sure to add the Watercraft endorsement...
1. Among all assumptions in CVP analysis, which one do you think is the most critical? Explain. 2. How will you change the cost-volume-profit analysis if the assumption (you identify in the previous...
Construct a confidence interval for p-P2 at the given level of confidence. x =26, n =229, x2 = 31, n = 302, 95% confidence The researchers are % confident the difference between the two population...
AP 9-2 (Moving Expenses) In May of the current year, following a dispute with her immediate superior, Ms. Elaine Fox resigned from her job in Halifax and began to look for other employment. She was...
Minimize the number of states in the following DFA: A b b a a a b b b E B a a
Describe the two constraints inherent in the presen- tation of accounting information. AppendixLO1
The liquidliquid extractor in Figure 8.1 operates at 100F and a nominal pressure of 15 psia. For the feed and solvent flows shown, determine the number of equilibrium stages to extract 99.5% of the...
Contrast operational versus tactical versus strategic decision-making. Illustrate with examples in An online retail setting (e.g., Amazon, Netflix, eBay); A bank setting; A university setting.
The following information is available for Vega Manufacturing Company for the monthe ending July 31, 2012: Cost of goods manufactured ..........$270,000 Selling expenses ................ 58,000...
The following information is available for the first month of operations of Enders Company, a manufacturer of mechanical pencils: Sales ................. $630,000 Gross profit .............. 370,000...
A Partial list of Berry Hotels costs is provided below. a. cost of laundering towels and bedding. b. Cost of food. c. Cost to paint lobby. d. Cost of advertising in local newspaper. e. Cost to mail a...
Aecerty 1067687 was completed with the folowing charaderistick Murulectere sec00 5xs:99 s35ida sputed
Assume todays settlement price on a CME EUR futures contract is $1.3180 per euro. You have a long position in one contract. EUR125,000 is the contract size of one EUR contract. Your performance bond...
Q2. Company ABC bought an equipment for $20,000 in 2015, with useful life of 5 years $5,000 residual value amortized using straight-line method. Prepare a table to illustrate the differences...

Why would standard cost be a more appropriate transfer cost between cost centers than actual cost?

Question:

Step by Step Answer:

Standard cost prevents the tra...View the full answer

Accounting

Students also viewed these Managerial Accounting questions