Which of the following types of transfer prices do NOT encourage the selling division to be efficient?
A) transfer prices based upon market prices
B) transfer prices based upon actual costs
C) transfer prices based upon standard costs
D) transfer prices based upon standard costs plus a markup for profit
Correct Answer:
Verified
Q10: Transfer pricing is used when:
A)multiple cost centres
Q11: _ is when the transfer price is
Q12: Figure 20-2
Klaehn Industries is a decentralized company
Q13: Which of the following is a legitimate
Q14: If it is available, the correct transfer
Q16: The opportunity cost approach to setting a
Q17: Figure 20-1
Universe Industries has two divisions:
Q18: Negotiated prices transfer prices are:
A)determined between a
Q19: A selling division produces components for a
Q20: The optimal transfer price from the viewpoint
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