Use the Information Below to Answer the Following Question(s)

question 134

Multiple Choice

Use the information below to answer the following question(s) .Crush Company makes internal transfers at 180% of full cost.The Soda Refining division purchases 30,000 containers of carbonated water per day, on average, from a local supplier, who delivers the water for $30 per container via an external shipper.In order to reduce costs the company located an independent producer in Manitoba who is willing to sell 30,000 containers at $20 each, delivered to Crush Company's shipping division in Manitoba.The company's Shipping Division in Manitoba can ship the 30,000 containers at a variable cost of $2.50 per container and a full cost, based on practical capacity, of $4.00 per container.When the company's Manitoba shipping division ships for external customers is charges $6.00 per container.
-When companies are unable to choose a transfer-pricing method which meets the requirements of the divisions concerned, they may use

• A)cost pricing.
• B)dual pricing.
• C)situational pricing.
• D)market pricing.
• E)pro-rating pricing.

---

Definitions:

Ground Substance

The non-cellular, gel-like substance surrounding connective tissue cells, providing support and mediating communication between cells.

Blood Vessels

Blood vessels are tubular structures that carry blood throughout the body, including the arteries, veins, and capillaries.

Chondrocytes

Cells found within cartilage tissue that are responsible for the synthesis and maintenance of the cartilaginous matrix.

Osteocytes

Osteocytes are mature bone cells formed from osteoblasts that have embedded themselves in the bone matrix; they maintain bone tissue structure and communicate with other bone cells.