Multiple Choice
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
Correct Answer:
Verified
Q22: Figure 20-1<br>Universe Industries has two divisions:
Q23: Figure 20-6<br>Callahan Industries is a decentralized company
Q24: A selling division produces components for a
Q25: Figure 20-10<br>Gregg Manufacturing has one plant
Q26: Figure 20-7<br>The Engine Division provides engines
Q28: Figure 20-5<br>Allied Industries has two divisions:
Q29: Figure 20-2<br>Klaehn Industries is a decentralized company
Q30: Figure 20-9<br>Miggs Manufacturing has one plant
Q31: Figure 20-8<br>Pautner Company had the following
Q32: Figure 20-1<br>Universe Industries has two divisions: