Case Of My Part

I don t think the subsidiary family is unfeignedly a problem to prestige Telephone troupe. The rig forward association must think about issues in the long destination and base on the managerial report system. 1. The president besides focuses on the information of monetary report provided by its subsidiary. As we all know, financial accouting is usually shown to international decision-makers, who may be interested in the structure of the follow s cyber pose profit, ie. main revenues and related expenses of a veritable year. But prestigiousness Telephone accompany , to some extent, is a part of the midland decision-makers of the Pretige Data Company. The president should pay more attentions to information that is accommodative to solve the main problem. In the Exhibt 2, expenses in like manner contain dummy cost, which are all paid to prestigiousness Telephone Company . We don t think it admit to do so, pull in from Mr. Rowe we know that Pretige Data Compan y is a separate exactly wholly owned entity by prestigiousness Telephone Company. The space be base be regarded as a discretionary fixed be to Prestige Telephone Company. This kind of costs can be intimately reduced by the produce company. When making decisions, such costs as space costs and early(a) payments for coperate services provided by parent company should not be taken into account.

If so, the expenses would be reduced quite a lot. 2. The reveunes stated in the financial accounting statement is establish on the different prices to the parent company($400 per hour) and commercial sales($800 per h our). However, to discerningly assess the s! ubsidiary s demonstrate value, we d stop use the fair market value. We can suppose if Prestige Telephone Company really forgo the subsidiary, it has to pay doubly the present prices, ie. $800 per hour, for the same service to other independent companies. What s more, just as the case says, the melodic theme behind the subsidiary is too good to give up easily. It s rational to predict that the parent company would support from greater losses. As we...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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