Net Income Is Calculated As

question 98

Multiple Choice

Net income is calculated as:

• A)Net sales + costs - operating expenses
• B)Net sales - costs - operating expenses
• C)Net sales + costs + operating expenses
• D)Net sales - costs + operating expenses
• E)None of these

Identify variables that influence transfer pricing decisions, such as variable costs, idle capacity, and external supply costs.

Evaluate the impact of reduced shipping and selling costs on transfer pricing.

Compare internal transfer pricing to external purchasing options.

Understand the concept of transfer pricing and factors influencing the minimum acceptable transfer price.

---

Definitions:

Low-Value Activities

Tasks or processes that contribute minimal benefit to organizational goals, often identified for elimination or automation.

Competency

The ability of an individual to do a job properly, encompassing a combination of skills, knowledge, and behavior.

Collective Learning

The process through which a group, organization, or society gains knowledge and understanding, improving its capabilities over time.

Technology

The application of scientific knowledge for practical purposes, especially in industry, where it affects methods of production, communication, and information management.