Good, Inc.'s Records Reveal the Following

question 62

Multiple Choice

Good, Inc.'s records reveal the following:
The variable cost of Division B will be incurred whether it buys from Division A or from an outside supplier.
-If Division A wants to transfer the components to Division B for $30 each, the manager of Division B would

• A) not want to buy from Division A, as the same component could be purchased at the market price of $24.
• B) buy from Division A, as this would be in the best interest of the company as a whole.
• C) buy from Division A as long as Division A could supply a large enough quantity to make it profitable to Division B.
• D) probably ask Division A's manager to split the difference between the $30 and the market price of $24 to arrive at a transfer price of $27.

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Definitions:

Unlimited Pleasure

The concept of seeking pleasure without any constraints or consideration of possible negative consequences.

Epicurus

An ancient Greek philosopher known for his emphasis on simple pleasures, friendship, and the pursuit of happiness through knowledge.

Hedonists

Individuals or philosophies that prioritize pleasure or happiness as the highest good.

Self-defeating

Refers to actions or policies that undermine their own goals or purposes.