What are the disadvantages of outsourcing? (BUY)

Q: What are joint costs? How do they affect the sell or process further decision?

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Q: explain how sunk costs create a barrier to entry into the market place.

A: Sunk costs are expenses that can not be retrieved if a corporation wishes to leave a market.

Q: Which of following is a disadvantage of outsourcing

A: “The deliberate use of outside services to conduct tasks typically performed by internal personnel…

Q: “Cost and price information play no role in negotiated transfer prices.” Do you agree? Explain.

A: Disagree with the statement “Cost and price information play no role in negotiated transfer prices”.

Q: Define predatory pricing, dumping, and collusive pricing.

A: Target Costing:Target costing refers to the cost that is ascertained as per the needs and wants of…

Q: Using the concept of substitution and income effect, explain why means-tested transfer programs…

A: The income effect  is basically the shift in consumer consumption of items as a result of  income…

Q: The term opportunity cost applies to a resource that a company ________. A) is thinking about…

A: Opportunity cost is the next best alternative benefit which is forgone.

Q: Explain the difference between market-based transfer prices and cost-based transfer prices.

A: Market based Transfer Price and Cost Based Transfer Price: Transfer pricing refers to the rules and…

Q: explain the transfer pricing method that is used / can be used in this company. Explain the…

A: Transfer pricing is the price at which different parties interact with each other . A…

Q: When a buying division purchases from outside supplier because the minimum transfer price is higher…

A: The maximum price is the price that can be paid by the buying decision so it may have no loss.

Q: Define the term make-or-buy (or outsourcing) analysis?

A: Make or buy: purchasing of goods from the outside vendors is called outsourcing.

Q: “Transfer pricing is confined to profit centers.” Do you agree? Explain.

A:

Q: "ABC systems may result in misallocation of indirect costs." Do you agree? Give reasons for your…

A: ABC system means Activity Based Costing system in which all indirect costs or overhead costs are…

Q: Discuss how competition is essential for market efficiency.

A: In this question we need to analyze how competition is essential for market efficiency.

Q: Define the term “opportunity cost.” How may this cost be relevant in a make-or-buy decision?

A: Cost is defined as the total amount of money spent by the company for the production or creation of…

Q: Calculate the lowest acceptable transfer price for the seller (Division A) ?

A: Calculation of contribution per unit of Division A Particulars Amount Selling price per unit 76…

Q: What are the pitfalls of franchising?

A: Franchising is a licensing that one party takes from the business owner. It allow that party to…

Q: Given the weaknesses of cost-based pricing, why wouldany company use this method?

A: Cost-based pricing means setting prices based on the cost of goods and services.  The major…

Q: Why can cost benefit analysis be difficult to carry out?

A: Introduction: Cost benefit analysis can be defined as a process which is undertaken by an…

Q: What are the limitations of TCE approach to the make or buy decision?

A: TCE Approach is Transaction Cost Economics Theory. It means an activity should be performed within…

Q: Give an example on the Sell or process further and solve it

A: Sell or process further is a Managerial decision taken by considering factors like cost, sales…

Q: Samsung must confront sunk costs. Why are sunk costs irrelevant in deciding whether to sell a…

A:

Q: Why is the similarity between a perfect competition and monopoly is the fact that both is faced with…

A: A monopolistic market and a perfectly competitive market are two market structures that have several…

Q: Why is reduce inventory cost is an advantage of inventory outsourcing?

A: Inventory is defined as the goods as well as materials, which has the business holding for an…

Q: Why is there often a conflict between the performance evaluation and cost-minimization objectives of…

A: SOLUTION- TRANSFER PRICING   IS THE ACCOUNTING PRACTICE THAT REPRESENTS THE PRICE THAT ONE DIVISION…

Q: Is short selling possible, using a CFD

A: Contract for difference is a financial derivative which is an agreement to exchange the difference…

Q: Explain why sunk costs are not considered in the analysis ofinvestment alternatives.

A: A sunk cost is also known as the retrospective cost, is a cost that cannot be recovered because it…

Q: Define competitive disadvantage costs.

A:

Q: 1.  why companies need to transfer price and advantages? 2. explain the transfer pricing method…

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: What does Unbundling entail reducing?

A: Unbundling is the process of selling, changing, or cutting assets, product lines, divisions, or…

Q: 1.  why companies need to transfer price and advantages?

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: What is one potential limitation of full-cost-based transfer prices?

A: Full cost based transfer pricing means transfer price based on total product cost per unit which…

Q: what are the advantages and disadvantages of decentralization?

A: Decentralization: When the power of decision making is transferred from the higher authority to…

Q: Which of the following is not an advantageous reason to reduce inventories? a. Inventories provide a…

A: Inventories are the stocks of finished goods which are purchased, utilized as well as maintained by…

Q: costs and benefits of a too-big-to-fail

A: Too-Big-To-Fail Policy: Too-big-to-fail policy means saving a firm or industry whose failure can…

Q: Briefly discuss how differentiated products in a monopolistic competitive framework can arise.

A: It is the primary characteristic of the monopolistic competition that there is product distinction.…

Q: When is it more appropriate to use market-based transfer price rather than cost-based transfer…

A: Transfer pricing:- Its the price at which one unit of a company sells goods to its another unit.…