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NEW QUESTION: 1
In an organization's transfer pricing system the selling division and the purchasing division each record a different price for the same transaction.
This is known as a:
A. Dual pricing system.
B. Marginal cost plus pricing system.
C. Full cost pricing system.
D. Two part tariff system.
Answer: A
NEW QUESTION: 2
When the front-end web page cannot be opened, you can eliminate the cause of the network problem by confirming that the device can be pinged.
A. False
B. True
Answer: A
NEW QUESTION: 3
The buyer has negotiated a cost-plus-incentive fee contract with the seller. The contract has a target cost of $300,000, a target fee of $40,000, a share ratio of 80/20, a maximum fee of $60,000, and a minimum fee of $10,000. If the seller has actual costs of $380,000, how much fee will the buyer pay?
A. $30,000
B. $104,000
C. $24,000
D. $56,000
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Comparing actual costs with the target cost shows an $80,000 overrun. The overrun is shared 80/20 (with the buyer's share always listed first). In this case 20% of $80,000 is $16,000, the seller's share, which is deducted from the $40,000 target fee. The remaining $24,000 is the fee paid to the seller.