Use the Following Information to Answer the Following Questions

question 16

Multiple Choice

Use the following information to answer the following Questions
Genesis Scents has two divisions: the Cologne Division and the Bottle Division. The Bottle Division produces containers that can be used by the Cologne Division. The Bottle Division's variable manufacturing cost is $2, shipping cost is $0.10, and the external sales price is $3. No shipping costs are incurred on sales to the Cologne Division, and the Cologne Division can purchase similar containers in the external market for $2.60.
-Transfer prices can be based on:

• A) variable cost.
• B) full cost.
• C) an external market price.
• D) a negotiated settlement between the buying and selling divisions.
• E) All of the answers are correct.

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Definitions:

Frontier

The edge of a settled area, or the boundary between the known and unknown, often associated with westward expansion in American history.

Railroads

Systems of tracks along which trains run, a major form of transportation for both goods and passengers, historically significant in the development and expansion of countries.

Development

The process of economic growth, expansion, or realization of social and cultural potential within a country or region.

Railroad Industry

The sector of the economy focused on the construction, operation, and maintenance of railways for the transport of goods and passengers.