In the Ambros Company, Division A has a product that can be sold either to outside customers or to Division B.Information about these divisions is given below:
-The company uses the opportunity cost approach to transfer pricing.What is the maximum transfer price in Case 1?
A) $91
B) $90
C) $83
D) $73

Question

In the Ambros Company, Division A has a product that can be sold either to outside customers or to Division B.Information about these divisions is given below:  
-The company uses the opportunity cost approach to transfer pricing.What is the maximum transfer price in Case 1?
A) $91 
B) $90 
C) $83 
D) $73

Quizplus · Accepted Answer

The maximum transfer price using the opportunity cost approach is the market price, which is $91 in this case.

In the Ambros Company, Division a Has a Product That