subject
Business, 24.10.2019 18:43 AaronMicrosoft15

Alarge electronics company is organized into mainly profit-center divisions. the components division and the consumer electronics division are profit-center divisions of the company. the components division produces individual chips and other electronic components. the components division supplies outside vendors in addition to the consumer electronics division. the consumer electronics division assembles components into devices sold to consumers. recently, there has been a dispute between the two divisions over a particular chip used in the production of a smart phone. the consumer electronics division argues that they are being overcharged because the transfer price they are being charged is significantly higher than the marginal cost of producing the chip. the transfer price includes a charge to recover fixed overhead costs as well as a mark-up to provide a profit margin for the components division. the components division argues that they need to charge a price commensurate with all their costs and that allows them to earn a reasonable profit for their output. compounding the issue, the particular chip under dispute is available from other vendors at a price less than the transfer price but higher than the marginal cost of production. you have been hired to suggest a solution to this problem. what would you recommend the electronics company do?

ansver
Answers: 1

Another question on Business

question
Business, 21.06.2019 12:30
(blank) is the type of competition that occurs in a competitive market without identical producers.
Answers: 1
question
Business, 22.06.2019 20:20
Direct materials (4.2 x $15) $ 63direct labor ($12 x 17.5) $210manufacturing overhead ($2.40 x 17.5) $42total job cost $ 315dougan, inc. allocates overhead based on a predetermined overhead rate of $2.40 per direct labor hour. employees are paid $12.00 per hour. job 24 requires 4.2 pounds of direct materials at a cost of $15.00 per pound. employees worked a total of 17.5 hours to complete the job. actual manufacturing overhead costs totaled $80,000 for the year for the company. how much is the cost of job 24?
Answers: 1
question
Business, 22.06.2019 23:30
Which career pathways require workers to train at special academies? a.emts and emergency dispatchers b.crossing guards and lifeguards c.police officers and firefighters d.lawyers and judges
Answers: 3
question
Business, 23.06.2019 00:00
Which of the following statements is correct? a major disadvantage of a partnership relative to a corporation is the fact that federal income taxes must be paid by the partners rather than by the firm itself. in a typical partnership, liability for other partners’ misdeeds is limited to the amount of a particular partner’s investment in the business.true in a limited partnership, the limited partners have voting control, while the general partner has operating control over the business, and the limited partners are individually responsible, on a pro rata basis, for the firm’s debts in the event of bankruptcy. partnerships have more difficulty attracting large amounts of capital than corporations because of such factors as unlimited liability, the need to reorganize when a partner dies, and the illiquidity of partnership interests.
Answers: 1
You know the right answer?
Alarge electronics company is organized into mainly profit-center divisions. the components division...
Questions
question
Mathematics, 12.10.2019 01:30
question
Mathematics, 12.10.2019 01:30
question
Mathematics, 12.10.2019 01:30