Analyze the effect of both full-cost and variable-cost transfer pricing methods on Phipps’ cash flows using a spreadsheet program such as Excel.

Phipps manufactures circuit boards in Division A, a country with a 30% income tax rate, and transfers them to Division B, a country with a 40% income tax. An import duty of 15% of the transfer price is paid on all imported products. The import duty is not deductible in computing taxable income. The circuit boards’ full cost is $1,000 and variable cost is $700; they are sold by Division B for $1,200. The tax authorities in both countries allow firms to use either variable cost or full cost as the transfer price.

The Assignment:

  • Part 1: Analyze the effect of both full-cost and variable-cost transfer pricing methods on Phipps’ cash flows using a spreadsheet program such as Excel.
  • Part 2: Make your recommendation as to how the organization should proceed, being sure to justify your recommendation with examples form this week’s resources, and/or additional research. Complete this aspect of the Assignment by using a word processing program such as Word.
Type of paper Academic level Subject area
Number of pages Paper urgency Cost per page:
 Total:

Order Management

15%
get 15% discount on your first order code:first15

Premium Service

  • 100% Custom papers
  • Any delivery date
  • 100% Confidentiality
  • 24/7 Customer support
  • The finest writers & editors
  • No hidden charges
  • No resale promise

Format and Features

  • Approx. 275 words / page
  • All paper formats (APA, MLA, Harvard, Chicago/Turabian)
  • Font: 12 point Arial/Times New Roman
  • Double and single spacing
  • FREE bibliography page
  • FREE title page

0% Plagiarism

We take all due measures in order to avoid plagiarisms in papers. We have strict fines policy towards those writers who use plagiarisms and members of QAD make sure that papers are original.


Last Completed Projects

# topic title discipline academic level pages delivered
6
Writer's choice
Business
University
2
1 hour 32 min
7
Wise Approach to
Philosophy
College
2
2 hours 19 min
8
1980's and 1990
History
College
3
2 hours 20 min
9
pick the best topic
Finance
School
2
2 hours 27 min
10
finance for leisure
Finance
University
12
2 hours 36 min
© 2015 researchteam