A Company Has Two Divisions: One Making Components and the Other

question 2

Multiple Choice

A company has two divisions: one making components and the other electrical goods. The component division sells a heating ring to the electrical goods division to make kettles but this division can buy a similar component from an outside supplier for £12. The costs of a heating ring made by the component division include a variable cost of £8 and an allocation of overhead costs of £5.
If there is spare capacity in the component division, what should the transfer price be?

• A) Below £12
• B) Above £8
• C) Between £12 and £8
• D) Above £12

Describe the role and functionality of workspace neurons in consciousness and cognitive processes.

Understand sleep patterns across different age groups and the necessity of sleep.

Grasp the mechanisms and theories related to dreaming, including the activation-synthesis hypothesis.

Explain the effects of external stimuli or conditions, such as anesthesia and placebos, on consciousness and perception.

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Definitions:

Amortized Cost Basis

An accounting method that gradually writes off the initial cost of an asset over a period, which reflects its consumption or use over time.

Credit Loss

Credit Loss is the loss incurred by a lender when a borrower fails to repay a loan, and the recoverable amount is less than the outstanding balance.

Effective Interest Rate

The real cost of borrowing, taking into account the effects of compounding interest.

Debt Security

A financial instrument representing a loan made by an investor to a borrower, typically corporate or governmental, where the borrower is obligated to pay back with interest.