In Setting Internal Transfer Prices, the Maximum Price That the Purchasing

question 98

Multiple Choice

In setting internal transfer prices, the maximum price that the purchasing division would accept is:

• A)A price that will result in a profit to the selling division.
• B)A price that will result in a profit to the purchasing division.
• C)Its variable cost of the product plus opportunity costs gained by the transfer.
• D)Its external cost to purchase the product.

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Definitions:

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