Which Prices Are Recorded by Departments Under a Dual-Rate Transfer $\begin{array}{cl}\text { Selling } & \text { Purchasing } \\\underline{\text { Department }} & \underline{\text { Department }}\end{array}$

Multiple Choice

Which prices are recorded by departments under a dual-rate transfer pricing system? $\begin{array}{cl}\text { Selling } & \text { Purchasing } \\\underline{\text { Department }} & \underline{\text { Department }}\end{array}$

a. $\begin{array}{llcc}\text { Variable cost } \quad \text { Variable cost }\end{array}$

b. $\begin{array}{llcc} \text { Variable cost } & \text { Market price }\end{array}$

c. $\begin{array}{llcc}\text { Market price } \quad \text { Full cost } \end{array}$

d. $\begin{array}{llcc}\text { Market price } & \text { Variable cost }\end{array}$

A) Variable cost/Market price
B) Market price/Full cost
C) Variable cost/Variable cost
D) Market price/Variable cost