For Each of the Following Situations, Select the Best Answer

question 17

Short Answer

For each of the following situations, select the best answer concerning accounting for income taxes in combinations:
(A) May file a consolidated income tax return.
(B) May not a file consolidated income tax return.
(C) Must file a consolidated income tax return.
_____1. Parent company owns 85% of the voting stock of the subsidiary, and there are significant intercompany transactions.
_____2. Subsidiary is a foreign corporation.
_____3. Parent company owns 90% of the voting stock of the subsidiary, but there are no intercompany inventory transactions.
_____4. Parent company owns 75% of the voting stock of the subsidiary but there are no intercompany inventory transactions.
_____5. Parent company owns 90% of the voting stock of the subsidiary, and there are intercompany inventory transactions with transferred goods in ending inventory.
_____6. Parent company owns 75% of the voting stock of the subsidiary and there are intercompany inventory transactions with transferred goods in ending inventory.

Acknowledge the role of integration and collaboration tools in SCM, such as EDI, XML, and intranets.

Understand the implications of inventory velocity on customer satisfaction and supply chain performance.

Understand the various types of CRM applications and their functionalities.

Describe how CRM systems enhance business intelligence through customer behavior analysis.

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Definitions:

Decentralized Company

A decentralized company allows for decision-making authority to be distributed among various levels within the organization rather than being concentrated at the top.

Decision Making

Choosing among alternative actions; a component inherent in the other management processes of planning, directing, controlling, and improving.

Negotiated Price Approach

An approach to transfer pricing that allows managers of decentralized units to agree (negotiate) among themselves as to the transfer price.

Transfer Price

The price at which goods and services are sold between divisions within the same company.