Multiple Choice
(Appendix 12A) In setting a transfer price, which of the following should not be considered?
A) Fixed production costs of the buying division.
B) Production capacity of the selling division.
C) Product demand from outside customers.
D) Costs eliminated by internal transfers.
Correct Answer:
Verified
Correct Answer:
Verified
Q15: (Appendix 12A)Division 1 of Ace Company makes
Q16: (Appendix 12A)The North Division of Barter Company
Q17: (Appendix 12A)Division A makes watzits.The company has
Q18: (Appendix 12A)A transfer price is the price
Q19: (Appendix 12A)One disadvantage of using the actual
Q20: (Appendix 12A)Division 1 of Ace Company makes
Q21: (Appendix 12A)Setting transfer prices at full cost
Q22: (Appendix 12A)The DVD Division of Sound Company
Q24: (Appendix 12A)The Red River Division of Alto
Q25: (Appendix 12A)The Western Division of Pryto Corporation