Multiple Choice
Worldwide Inc., is a multinational company with divisions around the world. Division A in the United States purchases a part from Division G in China. There is no outside market for the part because it is used to manufacture another product. The manufacturing cost for the part is $5. Transportation is $1 and commissions are $.5 but do not need to be paid.
What is the transfer price using the cost-plus method?
A) $5.50
B) $6.50
C) $6
D) $5
Correct Answer:
Verified
Correct Answer:
Verified
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