Anderson Customized Security

Anderson Customized Security Essay example
Undergraduate
Essay
Finance & Accounting
Pages 5 (1255 words)
Download 0
A problem involving Transfer Pricing has occurred between two subsidiaries of ACS at a time when there was no set of corporate policies for management decision making guidelines. …

Introduction

Based on the given case facts (See Appendix), hereunder are the effects of each alternative pricing. Quantitative Effects of Alternative Transfer Prices on the ROI of Reading Company: Reading Co.’s Offer = $ 11.80 Millwall Co.’s Offer = $7.68 VP Finance Offer = $10.12 Selling Price $ 11.80 Mftg. VC+FC ( 8.40) Gross Profit $ 3.40 S & A 0.00 NIBT $ 3.40 % NIBT./Capital = 40.48% Standard with Normal Operations = 30% Selling Price = $ 7.68 Mftg VC + FC = ( 8.40) Loss = ($0.72) S & A 0 Net Loss ($0.72) % Net Loss/Capital(8.57%) Selling Price = $10.12 Mftg.VC + FC = ( 8.40) Gross Profit = $1.72 S & A 0 NIBT =$1.72 %NIBT/Capital =20.48% Since the effects of Millwall Company’s buying price offer and the ACS Corporate VP Finance recommended buying price offer would certainly pull down the ROI of Reading Company, it will definitely be unfair for the provider of component. On the other hand, the offer of Reading Company seeks to take advantage of the situation of Millwall Company by demanding a price that will give Reading Company a much higher Return on Capital Invested before tax for the component orders of Millwall Company. The usual ROI before tax of Reading Co. is only 30%. And Reading wants 40% NIBT/Capital. ...
Download paper
Not exactly what you need?

Related papers

What is Security? Why Network Security is Important
2007) It is the twentieth century where improved communication technologies are inventing one after another. Internet has become a powerful and interactive carrier providing extensive activities and web services. Organizations expand their resources with the help of Internet. Websites are created, for informational purposes, advertisement, online shopping etc. In the modernized countries, Internet…
IT security
In this scenario, most of the data stored is extremely secret and not intended for common people screening in addition to the outside business access. In addition, a lot of companies are exclusively dependent on their business and economical data which is proficiently stored in computers like any web based enterprise. In case of such businesses we can have customer records, private employee’s…
Network Security
Furthermore, the most significant advantage for a DMZ is that it protects the local area network domains by segregating the network layer (RE: [FW1] DMZ advantages). Likewise, the disadvantages associated with DMZ are not significant, but one issue can be highlighted, as the segregation may create a hassle for the network administration because DMZ requires frequent updates and maintenance.…
Network Security Research
Moreover, these authentication procedures initialize at random intervals (CHAP, challenge handshake authentication protocol). Extensible Markup Protocol is more advanced as compare to CHAP as it supports multiple authentication methods. One more significant advantage EAP has that it executes on the link layer without IP address. Consequently, it is designed to support its own operations for…
Security Solutions: Questions
2. Compare the trade payables settlement period with the industry average. Explain the advantages and disadvantages to Security Solutions Ltd of maintaining its trade payables at the current level? Answer: The industry payable turnover is only 30 days. This means that the company is taking advantage by paying its creditors late. Although it is foregoing 2.5% discount, but it can make use of the…
Security Analysis and Portfolio Management
On the other hand, the intuition for the growth stocks that the stocks have higher prices in the market compared to their book value creates the definition. These findings were made when the two scholars Fama and French tested the leverages, book market ratios and price earnings ratios among others in an effort to examine the Capital Asset Pricing Module. 2. Factors explaining stock returns. The…
Managerial Accounting
Initially, they started off with producing high quality record players which attracted customers belonging to a certain age group but gradually they shifted into producing technologically advanced products such as CD players, MP3 players and USB turntable. This helped the company to reach a wider customer base, rather only a younger one. This indicates that their primary strategy was to achieve a…