​When Considering Setting the Transfer Price at the Market Price

question 2

Multiple Choice

​When considering setting the transfer price at the market price of a product similar to the intermediate good that is already available on the market

• A)​It is appropriate to ignore that the market price includes a margin above marginal cost
• B)It is OK if the product on the market includes costly features your downstream division does not use
• C)Consider whether the product on the market is inexpensive because its quality is lower than you use
• D)​If it is similar enough,it is justification for you producing it in-house

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Definitions:

COLA

An acronym for Cost of Living Adjustment, which is a periodic increase in wages to match or surpass increases in consumer prices.

OSHA

The Occupational Safety and Health Administration, a U.S. government agency responsible for ensuring workplace safety and health.

CMS

The Centers for Medicare & Medicaid Services, a federal agency within the United States Department of Health and Human Services that administers the nation’s major healthcare programs.

Patient Care

The services rendered by members of the health professions for the benefit of a patient.