Homework
Incremental Costs Analysis and Opportunity Costs
Respond to the following:
– From the first e-Activity, evaluate the opportunity costs for Damien Chrysler for failure to accept a proposal from within to manufacture a vehicle for the Indian market and suggest ways that opportunity cost can be minimized.
– Analyze how excess capacity and incremental cost analysis can benefit management decisions to accept or reject projects and how this process can impact the financial performance of the business. [250 words] [1-2 references]
Transfer Pricing
Respond to the following:
-From the second e-Activity, assess the potential problems a multinational firm could encounter using negotiated transfer pricing instead of market-based transfer pricing and make a recommendation to the firm on how to avoid these problems.
-Evaluate the accounting ethics of creating, initiating, or adjusting transactions to repatriate excess cash for multinational firms in transfer pricing decisions and suggest a way that this practice may be implemented. [250 words] [1-2 references]
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