Analyze the effect of both full-cost and variable-cost transfer pricing methods on cash flows using a spreadsheet program such as Excel.
Template
| Week 4 Application | |||
| Full Cost | Variable Cost | ||
| Division A Taxes: | |||
| Transfer Price | |||
| Less Cost (subtract) | |||
| Taxable Income | 0 | 0 | |
| Taxes in Low Country (or refund) | |||
| Division B Taxes: | |||
| Sales Price | |||
| Less Transfer Price (subtract) | |||
| Taxable Income | 0 | 0 | |
| Income Taxes | |||
| Import Duty | |||
| Taxes in High Country (or refund) | 0 | 0 | |
| Total Taxes |