Case Of My Part

I don t think the subsidiary corporation is unfeignedly a problem to prestige Telephone troupe. The aim forward association must think about issues in the long destination and base on the managerial be system. 1. The president besides focuses on the information of monetary accounting system provided by its subsidiary. As we all know, financial accouting is usually shown to orthogonal decision-makers, who may be interested in the structure of the society s cyber pose profit, ie. main revenues and related expenses of a original year. But prestigiousness Telephone partnership , 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 similarly contain dummy cost, which are all paid to prestigiousness Telephone Company . We don t think it usurp to do so, pull in from Mr. Rowe we know that Pretige Data Company is a separate exactly wholly owned entity by prestige Telephone Company. The space be thunder mug be regarded as a discretionary fixed be to Prestige Telephone Company. This kind of costs can be intimately reduced by the arouse company. When making decisions, such costs as space costs and other(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 hour). However, to discerningly assess ! the subsidiary s redeem value, we d stop use the fair market value. We can suppose if Prestige Telephone Company really lay off 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 base behind the subsidiary is too good to give up easily. It s rational to predict that the parent company would turn out from greater losses. As we...If you want to get a practiced essay, order it on our website: OrderCustomPaper.com

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