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    Exam 10: Decentralization: Responsibility, Accounting, Performance Evaluation, and Transfer Pricing
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    The Chasis Division Provides Frames for the Tractor Division of a Company
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The Chasis Division Provides Frames for the Tractor Division of a Company

Question 89

Question 89

Multiple Choice

The Chasis Division provides frames for the Tractor Division of a company. The standard unit costs for the Chasis Division are as follows: The Chasis Division provides frames for the Tractor Division of a company. The standard unit costs for the Chasis Division are as follows:   What is the transfer price based on full cost plus a markup of 20 percent? A)  $5,490 B)  $4,575 C)  $3,240 D)  $3,660 What is the transfer price based on full cost plus a markup of 20 percent?


A) $5,490
B) $4,575
C) $3,240
D) $3,660

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