Transfer prices should be set at a). marginal cost of the selling division plus a reasonable profit
Fantastic news! We've Found the answer you've been seeking!
Question:
Transfer prices should be set at
a). marginal cost of the selling division plus a reasonable profit amount
b). marginal cost of the selling division unless it is evaluated as a profit center.
c). the opportunity cost of he asset being transferred.
d). at whatever price is negotiated between the selling and buying divisions
Related Book For
Cost Management Accounting and Control
ISBN: 978-0324559675
6th Edition
Authors: Don R. Hansen, Maryanne M. Mowen, Liming Guan
Posted Date: