Multiple Choice
The Two Stage Photo Company has a division for each stage of photo processing.There is no external market for the first stage's output.For a fixed quantity of photo processing,the transfer price should depend on:
A) whatever management wants.
B) marginal costs at stage 1 only.
C) marginal costs at each stage.
D) average costs at stage 1 only.
E) average costs at each stage.
Correct Answer:
Verified
Correct Answer:
Verified
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