Accounting Tools for Business Decision Makers 6th Edition Kimmel Weygandt Kieso EBOOK PDF Instant Download

Description

Accounting: Tools for Business Decision Makers, 6th Edition
Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso EBOOK PDF Instant Download

• Table of Contents
• Acknowledgments
• 1 Introduction to Financial Statements
• Knowing the Numbers
• LO 1: Study the forms of business organization and the uses of accounting information.
• Forms of Business Organization
• Users and Uses of Financial Information
• Ethics in Financial Reporting
• LO 2: Explain the three principal types of business activity.
• Financing Activities
• Investing Activities
• Operating Activities
• LO 3: Describe the four financial statements and how they are prepared.
• Income Statement
• Retained Earnings Statement
• Balance Sheet
• Statement of Cash Flows
• Interrelationships of Statements
• Other Elements of an Annual Report
• A Look at IFRS
• 2 A Further Look at Financial Statements
• Just Fooling Around?
• LO 1: Identity the sections of a classified balance sheet.
• Current Assets
• Long-Term Investments
• Property, Plant, and Equipment
• Intangible Assets
• Current Liabilities
• Long-Term Liabilities
• Stockholders’ Equity
• LO 2: Use ratios to evaluate a company’s profitability, liquidity, and solvency.
• Ratio Analysis
• Using the Income Statement
• Using a Classified Balance Sheet
• Using the Statement of Cash Flows
• LO 3: Discuss financial reporting concepts.
• The Standard-Setting Environment
• Qualities of Useful Information
• Assumptions in Financial Reporting
• Principles in Financial Reporting
• Cost Constraint
• A Look at IFRS
• 3 The Accounting Information System
• Accidents Happen
• LO 1: Analyze the effect of business transactions on the basic accounting equation.
• Accounting Transactions
• Analyzing Transactions
• Summary of Transactions
• LO 2: Explain how accounts, debits, and credits are used to record business transactions.
• Debits and Credits
• Debit and Credit Procedures
• Stockholders’ Equity Relationships
• Summary of Debit/Credit Rules
• LO 3: Indicate how a journal is used in the recording process.
• The Recording Process
• The Journal
• LO 4: Explain how a ledger and posting help in the recording process.
• The Ledger
• Chart of Accounts
• Posting
• The Recording Process Illustrated
• Summary Illustration of Journalizing and Posting
• LO 5: Prepare a trial balance.
• Limitations of a Trial Balance
• A Look at IFRS
• 4 Accrual Accounting Concepts
• Keeping Track of Groupons
• LO 1: Explain the accrual basis of accounting and the reasons for adjusting entries.
• The Revenue Recognition Principle
• The Expense Recognition Principle
• Accrual versus Cash Basis of Accounting
• The Need for Adjusting Entries
• Types of Adjusting Entries
• LO 2: Prepare adjusting entries for deferrals.
• Prepaid Expenses
• Unearned Revenues
• LO 3: Prepare adjusting entries for accruals.
• Accrued Revenues
• Accrued Expenses
• Summary of Basic Relationships
• LO 4: Prepare an adjusted trial balance and closing entries.
• Preparing the Adjusted Trial Balance
• Preparing Financial Statements
• Quality of Earnings
• Closing the Books
• Summary of the Accounting Cycle
• LO *5: APPENDIX 4A: Describe the purpose and the basic form of a worksheet.
• A Look at IFRS
• 5 Merchandising Operations and the Multiple-Step Income Statement
• Buy Now, Vote Later
• LO 1: Describe merchandising operations and inventory systems.
• Operating Cycles
• Flow of Costs
• LO 2: Record purchases under a perpetual inventory system.
• Freight Costs
• Purchase Returns and Allowances
• Purchase Discounts
• Summary of Purchasing Transactions
• LO 3: Record sales under a perpetual inventory system.
• Sales Returns and Allowances
• Sales Discounts
• LO 4: Prepare a multiple-step income statement and a comprehensive income statement.
• Single-Step Income Statement
• Multiple-Step Income Statement
• Comprehensive Income Statement
• LO 5: Determine cost of goods sold under a periodic inventory system.
• LO 6: Compute and analyze gross profit rate and profit margin.
• Gross Profit Rate
• Profit Margin
• LO *7: APPENDIX 5A: Record purchases and sales of inventory under a periodic inventory system.
• Recording Merchandise Transactions
• Recording Purchases of Merchandise
• Freight Costs
• Recording Sales of Merchandise
• Comparison of Entries—Perpetual vs. Periodic
• A Look at IFRS
• 6 “Where Is That Spare Bulldozer Blade?”
• LO 1: Discuss how to classify and determine inventory.
• Classifying Inventory
• Determining Inventory Quantities
• LO 2: Apply inventory cost flow methods and discuss their financial effects.
• Specific Identification
• Cost Flow Assumptions
• Financial Statement and Tax Effects of Cost Flow Methods
• Using Inventory Cost Flow Methods Consistently
• LO 3: Explain the statement presentation and analysis of inventory.
• Presentation
• Lower-of-Cost-or-Market
• Analysis
• Adjustments for LIFO Reserve
• LO *4: APPENDIX 6A: Apply inventory cost flow methods to perpetual inventory records.
• First-In, First-Out (FIFO)
• Last-In, First-Out (LIFO)
• Average-Cost
• LO *5: APPENDIX 6B: Indicate the effects of inventory errors on the financial statements.
• Income Statement Effects
• Balance Sheet Effects
• A Look at IFRS
• 7 Fraud, Internal Control, and Cash
• Minding the Money in Madison
• LO 1: Define fraud and the principles of internal control.
• Fraud
• The Sarbanes-Oxley Act
• Internal Control
• Principles of Internal Control Activities
• Limitations of Internal Control
• LO 2: Apply internal control principles to cash.
• Cash Receipts Controls
• Cash Disbursements Controls
• LO 3: Identify the control features of a bank account.
• Electronic Funds Transfer (EFT) System
• Bank Statements
• Reconciling the Bank Account
• LO 4: Explain the reporting of cash and the basic principles of cash management.
• Reporting Cash
• Managing and Monitoring Cash
• Cash Budgeting
• LO *5: APPENDIX 7A: Explain the operation of a petty cash fund.
• Establishing the Petty Cash Fund
• Making Payments from Petty Cash
• Replenishing the Petty Cash Fund
• A Look at IFRS
• 8 Reporting and Analyzing Receivables
• What’s Cooking?
• LO 1: Explain how companies recognize accounts receivable.
• Types of Receivables
• Recognizing Accounts Receivable
• LO 2: Describe how companies value accounts receivable and record their disposition.
• Valuing Accounts Receivable
• Disposing of Accounts Receivable
• LO 3: Explain how companies recognize, value, and dispose of notes receivable.
• Determining the Maturity Date
• Computing Interest
• Recognizing Notes Receivable
• Valuing Notes Receivable
• Disposing of Notes Receivable
• LO 4: Describe the statement presentation of receivables and the principles of receivables managemen
• Financial Statement Presentation of Receivables
• Managing Receivables
• Evaluating Liquidity of Receivables
• Accelerating Cash Receipts
• A Look at IFRS
• 9 Reporting and Analyzing Long-Lived Assets
• A Tale of Two Airlines
• LO 1: Explain the accounting for plant asset expenditures.
• Determining the Cost of Plant Assets
• Expenditures During Useful Life
• To Buy or Lease?
• LO 2: Apply depreciation methods to plant assets.
• Factors in Computing Depreciation
• Depreciation Methods
• Revising Periodic Depreciation
• Impairments
• LO 3: Explain how to account for the disposal of plant assets.
• Sale of Plant Assets
• Retirement of Plant Assets
• LO 4: Identity the basic issues related to reporting intangible assets.
• Accounting for Intangible Assets
• Types of Intangible Assets
• LO 5: Discuss how long-lived assets are reported and analyzed.
• Presentation
• Analysis
• LO *6: APPENDIX 9A: Compute periodic depreciation using the declining-balance method and the units-o
• Declining-Balance Method
• Units-of-Activity Method
• A Look at IFRS
• 10 Reporting and Analyzing Liabilities
• And Then There Were Two
• LO 1: Explain how to account for current liabilities.
• What Is a Current Liability?
• Notes Payable
• Sales Taxes Payable
• Unearned Revenues
• Current Maturities of Long-Term Debt
• Payroll and Payroll Taxes Payable
• LO 2: Describe the major characteristics of bonds.
• Types of Bonds
• Issuing Procedures
• Determining the Market Price of Bonds
• LO 3: Explain how to account for bond transactions.
• Issuing Bonds at Face Value
• Discount or Premium on Bonds
• Issuing Bonds at a Discount
• Issuing Bonds at a Premium
• Redeeming Bonds at Maturity
• Redeeming Bonds before Maturity
• LO 4: Discuss how liabilities are reported and analyzed.
• Presentation
• Analysis
• LO *5: APPENDIX 10A: Apply the straight-line method of amortizing bond discount and bond premium.
• Amortizing Bond Discount
• Amortizing Bond Premium
• LO *6: APPENDIX 10B: Apply the effective-interest method of amortizing bond discount and bond premiu
• Amortizing Bond Discount
• Amortizing Bond Premium
• LO *7: APPENDIX 10C: Describe the accounting for long-term notes payable.
• A Look at IFRS
• 11 Reporting and Analyzing Stockholders’ Equity
• Oh Well, I Guess I’ll Get Rich
• LO 1: Discuss the major characteristics of a corporation.
• Characteristics of a Corporation
• Forming a Corporation
• Stockholder Rights
• Stock Issue Considerations
• Corporate Capital
• LO 2: Explain how to account for the issuance of common and preferred stock, and the purchase of tre
• Accounting for Common Stock
• Accounting for Preferred Stock
• Treasury Stock
• LO 3: Explain how to account for cash dividends and describe the effect of stock dividends and stock
• Cash Dividends
• Dividend Preferences
• Stock Dividends
• Stock Splits
• LO 4: Discuss how stockholders’ equity is reported and analyzed.
• Retained Earnings
• Retained Earnings Restrictions
• Balance Sheet Presentation of Stockholders’ Equity
• Analysis of Stockholders’ Equity
• Debt versus Equity Decision
• LO *5: APPENDIX 11A: Prepare entries for stock dividends.
• A Look at IFRS
• 12 Statement of Cash Flows
• Got Cash?
• LO 1: Discuss the usefulness and format of the statement of cash flows.
• Usefulness of the Statement of Cash Flows
• Classification of Cash Flows
• Significant Noncash Activities
• Format of the Statement of Cash Flows
• LO 2: Prepare a statement of cash flows using the indirect method.
• Indirect and Direct Methods
• Indirect Method—Computer Services Company
• Step 1: Operating Activities
• Summary of Conversion to Net Cash Provided by Operating Activities–Indirect Method
• Step 2: Investing and Financing Activities
• Step 3: Net Change in Cash
• LO 3: Use the statement of cash flows to evaluate a company.
• The Corporate Life Cycle
• Free Cash Flow
• LO *4: APPENDIX 12A: Prepare a statement of cash flows using the direct method.
• Step 1: Operating Activities
• Step 2: Investing and Financing Activities
• Step 3: Net Change in Cash
• LO *5: APPENDIX 12B: Use the T-account approach to prepare a statement of cash flows.
• A Look at IFRS
• 13 Financial Analysis: The Big Picture
• It Pays to Be Patient
• LO 1: Apply the concept of sustainable income and quality of earnings.
• Sustainable Income
• Quality of Earnings
• LO 2: Apply horizontal analysis and vertical analysis.
• Horizontal Analysis
• Vertical Analysis
• LO 3: Analyze a company’s performance using ratio analysis.
• Price-Earnings Ratio
• Liquidity Ratios
• Solvency Ratios
• Profitability Ratios
• LO *4: APPENDIX 13A: Evaluate a company comprehensively using ratio analysis.
• Liquidity Ratios
• Solvency Ratios
• Profitability Ratios
• A Look at IFRS
• 14 Managerial Accounting
• Just Add Water . . . and Paddle
• LO 1: Identify the features of managerial accounting and the functions of management.
• Comparing Managerial and Financial Accounting
• Management Functions
• Organizational Structure
• LO 2: Describe the classes of manufacturing costs and the differences between product and period cos
• Manufacturing Costs
• Product Versus Period Costs
• Illustration of Cost Concepts
• LO 3: Demonstrate how to compute cost of goods manufactured and prepare financial statements for a m
• Income Statement
• Cost of Goods Manufactured
• Cost of Goods Manufactured Schedule
• Balance Sheet
• LO 4: Discuss trends in managerial accounting.
• Service Industries
• Focus on the Value Chain
• Balanced Scorecard
• Business Ethics
• Corporate Social Responsibility
• 15 Job Order Costing
• Profiting from the Silver Screen
• LO 1: Describe cost systems and the flow of costs in a job order system.
• Process Cost System
• Job Order Cost System
• Job Order Cost Flow
• Accumulating Manufacturing Costs
• LO 2: Use a job cost sheet to assign costs to work in process.
• Raw Materials Costs
• Factory Labor Costs
• LO 3: Demonstrate how to determine and use the predetermined overhead rate.
• LO 4: Prepare entries for manufacturing and service jobs completed and sold.
• Assigning Costs to Finished Goods
• Assigning Costs to Cost of Goods Sold
• Summary of Job Order Cost Flows
• Job Order Costing for Service Companies
• Advantages and Disadvantages of Job Order Costing
• LO 5: Distinguish between under- and overapplied manufacturing overhead.
• Under- or Overapplied Manufacturing Overhead
• 16 Process Costing
• The Little Guy Who Could
• LO 1: Discuss the uses of a process cost system and how it compares to a job order system.
• Uses of Process Cost Systems
• Process Costing for Service Companies
• Similarities and Differences Between Job Order Cost and Process Cost Systems
• LO 2: Explain the flow of costs in a process cost system and the journal entries to assign manufactu
• Process Cost Flow
• Assigning Manufacturing Costs—Journal Entries
• LO 3: Compute equivalent units.
• Weighted-Average Method
• Refinements on the Weighted-Average Method
• LO 4: Complete the four steps to prepare a production cost report.
• Compute the Physical Unit Flow (Step 1)
• Compute the Equivalent Units of Production (Step 2)
• Compute Unit Production Costs (Step 3)
• Prepare a Cost Reconciliation Schedule (Step 4)
• Preparing the Production Cost Report
• Costing Systems—Final Comments
• LO *5: APPENDIX 16A: Compute equivalent units using the FIFO method.
• Equivalent Units Under FIFO
• Comprehensive Example
• FIFO and Weighted-Average
• 17 Activity-Based Costing
• Precor Is on Your Side
• LO 1: Discuss the difference between traditional costing and activity-based costing.
• Traditional Costing Systems
• Illustration of a Traditional Costing System
• The Need for a New Approach
• Activity-Based Costing
• LO 2: Apply activity-based costing to a manufacturer.
• Identify and Classify Activities and Assign Overhead to Cost Pools (Step 1)
• Identify Cost Drivers (Step 2)
• Compute Activity-Based Overhead Rates (Step 3)
• Allocate Overhead Costs to Products (Step 4)
• Comparing Unit Costs
• LO 3: Explain the benefits and limitations of activity-based costing.
• The Advantage of Multiple Cost Pools
• The Advantage of Enhanced Cost Control
• The Advantage of Better Management Decisions
• Some Limitations and Knowing When to Use ABC
• LO 4: Apply activity-based costing to service industries.
• Traditional Costing Example
• Activity-Based Costing Example
• LO *5: APPENDIX 17A: Explain just-in-time (JIT) processing.
• Objective of JIT Processing
• Elements of JIT Processing
• Benefits of JIT Processing
• 18 Cost-Volume-Profit
• Don’t Worry—Just Get Big
• LO 1: Explain variable, fixed, and mixed costs and the relevant range.
• Variable Costs
• Fixed Costs
• Relevant Range
• Mixed Costs
• LO 2: Apply the high-low method to determine the components of mixed costs.
• High-Low Method
• Importance of Identifying Variable and Fixed Costs
• LO 3: Prepare a CVP income statement to determine contribution margin.
• Basic Components
• CVP Income Statement
• LO 4: Compute the break-even point using three approaches.
• Mathematical Equation
• Contribution Margin Technique
• Graphic Presentation
• LO 5: Determine the sales required to earn target net income and determine margin of safety.
• Target Net Income
• Margin of Safety
• 19 Cost-Volume-Profit Analysis: Additional Issues
• Not Even a Flood Could Stop It
• LO 1: Apply basic CVP concepts.
• Basic Concepts
• Basic Computations
• CVP and Changes in the Business Environment
• LO 2: Explain the term sales mix and its effects on break-even sales.
• Break-Even Sales in Units
• Break-Even Sales in Dollars
• LO 3: Determine sales mix when a company has limited resources.
• LO 4: Indicate how operating leverage affects profitability.
• Effect on Contribution Margin Ratio
• Effect on Break-Even Point
• Effect on Margin of Safety Ratio
• Operating Leverage
• LO *5: APPENDIX 19A: Explain the differences between absorption costing and variable costing.
• Example: Comparing Absorption Costing with Variable Costing
• Net Income Effects
• Decision-Making Concerns
• Potential Advantages of Variable Costing
• 20 Incremental Analysis
• Keeping It Clean
• LO 1: Describe management’s decision-making process and incremental analysis.
• Incremental Analysis Approach
• How Incremental Analysis Works
• Qualitative Factors
• Untitled
• Untitled
• Relationship of Incremental Analysis and Activity-Based Costing
• Types of Incremental Analysis
• LO 2: Analyze the relevant costs in accepting an order at a special price.
• LO 3: Analyze the relevant costs in a make-or-buy decision.
• Opportunity Cost
• LO 4: Analyze the relevant costs in determining whether to sell or process materials further.
• Single-Product Case
• Multiple-Product Case
• LO 5: Analyze the relevant costs to be considered in repairing, retaining, or replacing equipment.
• LO 6: Analyze the relevant costs in deciding whether to eliminate an unprofitable segment or product
• 21 Budgetary Planning
• What’s in Your Cupcake?
• LO 1: State the essentials of effective budgeting and the components of the master budget.
• Budgeting and Accounting
• The Benefits of Budgeting
• Essentials of Effective Budgeting
• The Master Budget
• LO 2: Prepare budgets for sales, production, and direct materials.
• Sales Budget
• Production Budget
• Direct Materials Budget
• LO 3: Prepare budgets for direct labor, manufacturing overhead, and selling and administrative expen
• Direct Labor Budget
• Manufacturing Overhead Budget
• Selling and Administrative Expense Budget
• Budgeted Income Statement
• LO 4: Prepare a cash budget and a budgeted balance sheet.
• Cash Budget
• Budgeted Balance Sheet
• LO 5: Apply budgeting principles to nonmanufacturing companies.
• Merchandisers
• Service Companies
• Not-for-Profit Organizations
• 22 Budgetary Control and Responsibility Accounting
• Pumpkin Madeleines and a Movie
• LO 1: Describe budgetary control and static budget reports.
• Budgetary Control
• Static Budget Reports
• LO 2: Prepare flexible budget reports.
• Why Flexible Budgets?
• Developing the Flexible Budget
• Flexible Budget—A Case Study
• Flexible Budget Reports
• LO 3: Apply responsibility accounting to cost and profit centers.
• Controllable Versus Noncontrollable Revenues and Costs
• Principles of Performance Evaluation
• Responsibility Reporting System
• Types of Responsibility Centers
• LO 4: Evaluate performance in investment centers.
• Return on Investment (ROI)
• Responsibility Report
• Judgmental Factors in ROI
• Improving ROI
• LO *5: APPENDIX 22A: Explain the difference between ROI and residual income.
• Residual Income Compared to ROI
• Residual Income Weakness
• 23 Standard Costs and Balanced Scorecard
• 80,000 Different Caffeinated Combinations
• LO 1: Describe standard costs.
• Distinguishing Between Standards and Budgets
• Setting Standard Costs
• LO 2: Determine direct materials variances.
• Analyzing and Reporting Variances
• Direct Materials Variances
• LO 3: Determine direct labor and total manufacturing overhead variances.
• Direct Labor Variances
• Manufacturing Overhead Variances
• LO 4: Prepare variance reports and balanced scorecards.
• Reporting Variances
• Income Statement Presentation of Variances
• Balanced Scorecard
• LO *5: APPENDIX 23A: Identify the features of a standard cost accounting system.
• Journal Entries
• Ledger Accounts
• LO *6: APPENDIX 23B: Compute overhead controllable and volume variances.
• Overhead Controllable Variance
• Overhead Volume Variance
• 24 Planning for Capital Investments
• Floating Hotels
• LO 1: Describe capital budgeting inputs and apply the cash payback technique.
• Cash Flow Information
• Illustrative Data
• Cash Payback
• LO 2: Use the net present value method.
• Equal Annual Cash Flows
• Unequal Annual Cash Flows
• Choosing a Discount Rate
• Simplifying Assumptions
• Comprehensive Example
• LO 3: Identify capital budgeting challenges and refinements.
• Intangible Benefits
• Profitability Index for Mutually Exclusive Projects
• Risk Analysis
• Post-Audit of Investment Projects
• LO 4: Use the internal rate of return method.
• Comparing Discounted Cash Flow Methods
• LO 5: Use the annual rate of return method.
• A Specimen Financial Statements: Apple Inc.
• B Specimen Financial Statements: Columbia Sportswear Company
• C Specimen Financial Statements: VF Corporation
• D Specimen Financial Statements: Amazon.com, Inc.
• E Specimen Financial Statements:Wal-Mart Stores, Inc.
• F Specimen Financial Statements: Louis Vuitton
• G Time Value of Money
• LO 1: Compute interest and future values
• Nature of Interest
• Future Value of a Single Amount
• Future Value of an Annuity
• LO 2: Compute present values.
• Present Value Variables
• Present Value of a Single Amount
• Present Value of an Annuity
• Time Periods and Discounting
• Present Value of a Long-Term Note or Bond
• LO 3: Use a financial calculator to solve time value of money problems.
• Present Value of a Single Sum
• Present Value of an Annuity
• Useful Applications of the Financial Calculator
• H Reporting and Analyzing Investments
• LO 1: Explain how to account for debt investments
• Why Corporations Invest
• Accounting for Debt Investments
• LO 2: Explain how to account for stock investments.
• Holdings of Less than 20%
• Holdings Between 20% and 50%
• Holdings of More than 50%
• LO 3: Discuss how debt and stock investments are reported in the financial statements
• Categories of Securities
• Balance Sheet Presentation
• Presentation of Realized and Unrealized Gain or Loss
• Statement of Cash Flows Presentation
• *I Payroll Accounting
• LO 1: Record the payroll for a pay period.
• Determining the Payroll
• Recording the Payroll
• LO 2: Record employer payroll taxes.
• FICA Taxes
• Federal Unemployment Taxes
• State Unemployment Taxes
• Recording Employer Payroll Taxes
• Filing and Remitting Payroll Taxes
• LO 3: Discuss the objectives of internal control for payrol
• *J Subsidiary Ledgers and Special Journals
• LO 1: Describe the nature and purpose of asubsidiary ledger
• Subsidiary Ledger Example
• Advantages of Subsidiary Ledgers
• LO 2: Record transactions in special journals.
• Sales Journal
• Cash Receipts Journal
• Purchases Journal
• Cash Payments Journal
• Effects of Special Journals on the General Journal
• Cyber Security: A Final Comment
• K Accounting for Partnerships
• LO 1: Discuss and account for the formation of a partnerships
• Characteristics of Partnerships
• Organizations with Partnerships
• Advantages and Disadvantages of Partnerships
• The Partnership Agreement
• Accounting for a Partnership Formation
• LO 2: Explain how to account for net income or net loss of a partnership
• Dividing Net Income or Net Loss
• Partnership Financial Statements
• LO 3: Explain how to account for the liquidation of a partnerships
• No Capital Deficiency
• Capital Deficiency
• LO 4: Prepare Journal entries when a partner is either admitted or withdraws
• Admission of a Partner
• Withdrawal of a Partner
• *L Accounting for Sole Proprietorships
• LO 1: Identify the differences in equity accounts between a corporation and a sole proprietorship.
• LO 2: Understand what accounts increase and decrease owner’s equity.
• Owner’s Equity in a Sole Proprietorship
• Recording Transactions of a Proprietorship
• LO 3: Describe the differences between a retained earnings statement and an owner’s equity stateme
• LO 4: Explain the process of closing the books for a sole proprietorship
• Preparing a Post-Closing Trail Balance for a Proprietorship
• M Pricing
• LO 1: Compute a target cost when the market determines a product price.
• Target Costing
• LO 2: Compute a target selling price using cost-plus pricing.
• Cost-Plus Pricing
• Variable-Cost Pricing
• LO 3: Use time-and-material pricing to determine the cost of services provided.
• LO 4: Determine a transfer price using the negotiated, cost-based, and market-based approaches
• Negotiated Transfer Prices
• Cost-Based Transfer Prices
• Market-Based Transfer Prices
• Effect of Outsourcing on Transfer Pricing
• Transfers Between Divisions in Different Countries
• LO 5: Determine prices using absorption-cost pricing and variable-cost pricing.
• Absorption-Cost Pricing
• Variable-Cost Pricing
• Company Index
• Subject Index