Hasslehoff Inc

question 29

Multiple Choice

Hasslehoff Inc.is a multinational company with divisions around the world.Division A in the United States purchases a part from Division G in Canada.There is no outside market for the part.The part is sold for $12 and normally receives a 20% markup on cost. What is the transfer price using the resale price method?

• A)$9.60
• B)$10.00
• C)$12.00
• D)$14.40

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Definitions:

Ethics

A set of moral principles that govern the behavior of individuals or organizations and guide decision-making and conduct.

Stakeholders

Stakeholders are individuals, groups, or organizations that have an interest in the performance and actions of a company, which can include shareholders, employees, customers, and suppliers.

Conflicts of Interest

Situations where an individual's or entity’s obligations to multiple parties could compromise the decision-making or actions taken, typically due to a clash between personal and professional interests.

Accounting Profit

The net income of a company as calculated by subtracting total expenses from total revenue, according to accounting rules.