Multiple Choice
Hasslehoff Inc., is a multinational company with divisions around the world.Division A in the United States purchases a part from Division G in Canada.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) $5
D) $6
Correct Answer:
Verified
Correct Answer:
Verified
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