Question: 1. Why should managers be closely involved in preparing their responsibility accounting budgets?
2. Nokia aims to give its managers timely cost reports. In responsibility accounting, who receives timely cost reports and specific cost information? Explain.
3. A What is a transfer price? Under what conditions is a marketbased transfer price most likely to be used?
4. What is a joint cost? How are joint costs usually allocated among the products produced from them?
5. B Give two examples of products with joint costs.