Suppose That the Watchband Department of Timex Sells Completed Watchbands

Multiple Choice

Suppose that the watchband department of Timex sells completed watchbands to the finished watch department. The finished watch department is charged the price it would have to pay an outside watchband manufacturer less a discount to reflect low sales and transportation costs. This method of pricing is called ____ pricing.

A) zone
B) actual full cost
C) standard full cost
D) cost plus investment
E) market-based cost