Division a Produces a Component and Wants to Sell It

question 56

Multiple Choice

Division A produces a component and wants to sell it to Division B.The transfer price is

• A) revenue to Division 'A' and a cost to Division B.
• B) revenue to Division 'B' and a cost to Division A.
• C) revenue to Division 'A' and no effect on Division B.
• D) a cost to Division 'B' and no effect on Division A.

---

Definitions:

Mean

The average of a set of numbers, calculated by dividing the sum of all values by the number of values.

Median

A measure of central location provided by the value in the middle when the data are arranged in ascending order.

Uniform Distribution

A type of probability distribution in which all outcomes are equally likely.