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Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher
Edition 2ISBN: 978-0077274993Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher
Edition 2ISBN: 978-0077274993 Exercise 17
Custom Freight Systems (B): Transfer Pricing
Assume that all of the information is the same as in Integrative Case 15-34, but instead of receiving only one outside bid, Logistics receives two. The new bid is from World Services for $195 per hundred pounds. World has offered to use Air Cargo for transporting packages. Air Cargo will charge World $155 per hundred pounds. The bids from Forwarders and United Systems remain the same as in Integrative Case 15-34, $210 and $185, respectively.
Required
Which bid should Logistics Division take Why
Prepared by Thomas B. Rumzie under the direction of Michael W. Maher. © Copyright Michael W. Maher, 2006.
Assume that all of the information is the same as in Integrative Case 15-34, but instead of receiving only one outside bid, Logistics receives two. The new bid is from World Services for $195 per hundred pounds. World has offered to use Air Cargo for transporting packages. Air Cargo will charge World $155 per hundred pounds. The bids from Forwarders and United Systems remain the same as in Integrative Case 15-34, $210 and $185, respectively.
Required
Which bid should Logistics Division take Why
Prepared by Thomas B. Rumzie under the direction of Michael W. Maher. © Copyright Michael W. Maher, 2006.
Explanation
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The summery of question is; Logistics di...
Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher
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