Division a Transfers a Profitable Subassembly to Division B,where It

question 19

Multiple Choice

Division A transfers a profitable subassembly to Division B,where it is assembled into a final product.Division A is located in New Zealand,which has a high tax rate.Division B is located in Thailand,which has a low tax rate.Ideally, (1) which type of before tax income should each division report from the transfer and (2) what type of transfer price should be set for the subassembly?
Division A
Division B
Division C
Income
Income
Price

• A) low
• Low
• Low
• B) low
• High
• Low
• C) low
• High
• High
• D) high
• Low
• High

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Definitions:

If-else Statement

A conditional statement in programming that executes one block of code if its condition is true, and another block if the condition is false.

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The expense associated with the transportation of goods from one location to another, often calculated based on weight, dimensions, and distance.

Online Sale

A transaction for the purchase of goods or services conducted over the internet.

Default Case

In switch statements, the case that is executed when no case matches the switch expression.