Which Prices Are Recorded by Departments Under a Dual-Rate Transfer $\quad$

question 72

Short Answer

Which prices are recorded by departments under a dual-rate transfer pricing system? $\quad$$\begin{array} { l l } \text { Selling } & \text { Purchasing } \\\text { Department } & \text { Department } \\\hline\end{array}$
A) $\begin{array} { l l } \text { Variable cost } & \text { Variable cost } \\\end{array}$
B) $\begin{array} { l l } \text { Variable cost } & \text { Market price } \\\end{array}$
C) $\begin{array} { l l } \text { Market price } & \text { Full cost } \\\end{array}$
D) $\begin{array} { l l } \text { Market price } & \text { Variable cost }\end{array}$

• A)\(\begin{array} { l l } \text { Variable cost } & \text { Variable cost } \\\end{array}\)
• B)\(\begin{array} { l l } \text { Variable cost } & \text { Market price } \\\end{array}\)
• C)\(\begin{array} { l l } \text { Market price } & \text { Full cost } \\\end{array}\)
• D)\(\begin{array} { l l } \text { Market price } & \text { Variable cost }
• \end{array}\)

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