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The Engine Division Provides Engines for the Tractor Division of a Company

Question 101

Multiple Choice

The Engine Division provides engines for the Tractor Division of a company. The standard unit costs for Engine Division are: The Engine Division provides engines for the Tractor Division of a company. The standard unit costs for Engine Division are: The engine department has excess capacity. What is the best transfer price to avoid transfer price problems? A) $1,350 B) $300 C) $900 D) $2,100 The engine department has excess capacity. What is the best transfer price to avoid transfer price problems?


A) $1,350
B) $300
C) $900
D) $2,100

Correct Answer:

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