P2 Exam Dumps : Advanced Management Accounting

Customer profitability analysis to identify key strategic customers

Customer information harvested from social media to target products

Production cycle time analysis to improve production efficiency

Real-time inventory management information shared with producers to influence their production plans

A five year history of a company's aged debtor list to assess the long-run effectiveness of credit control

The selling price recorded by the selling division is higher than the cost recorded by the receiving division.

Internal customers are offered trade discounts depending on the number of units they purchase.

Internal transfers are priced at marginal cost and a lump sum payment is made subsequently to contribute to fixed costs.

Internal customers are charged a lower price than external customers to reflect savings in distribution costs.

A negotiated transfer price could help to overcome the problem of establishing a single price for this external market.

A single market price for all of the division's output can be determined easily whereas a negotiated transfer price may result in protracted negotiations.

A negotiated transfer price will always result in goal congruence whereas this is not always true when using a single market-based transfer price.

A market-based transfer price will ensure both divisional autonomy and goal congruence because part of the division's output is sold to the external market.