1. Analyze what the variances to the standards are, including an examination of possible causes.
2. Propose at least two recommendations for potential remedies to address the variances.
3. Summarize how understanding variance analysis can impact managerial decision making.
The next area you have been asked to address is regarding the decision to transfer the new lounge chair from its production division in Country X to the companys retail division in Country Y. The management team wants to understand which transfer pricing method should be used: full cost or variable cost. In Doc Sharing, your Instructor will provide you with a scenario for The Better Chair Company to use for this part of the Assignment.
Note: In addition to submitting your work in Excel, include your calculations within your report by copying and pasting the information from Excel. For information on inserting data from Excel into Word, refer to the following:
Note: In addition to submitting your work in Excel, include your calculations within your report by copying and pasting the information from Excel.
1. Synthesize the results of your calculations to recommend which transfer pricing method will result in a better overall outcome.
2. Explain how understanding and utilizing transfer pricing can impact managerial decision making.
This assignment has an ASSIGNMENT TEMPLATE located in the files area that assignment needs to be laced on. The written part only need to be 3 pages. I am paying for 4 pages because of the EXCEL SPREDSHEET that needs to be completed. This SPREADSHEET will also need to be copy and pasted into the assignment
The numbers for the Variance Worksheet is the files that says (Week 4 numbers data sheet for the assignment)
