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

question 106

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 the vendor division receives full cost plus a mark-up, and the buying division pays the market price, this is referred to as

• A)dual pricing.
• B)market pricing.
• C)single pricing.
• D)prorated transfer pricing.
• E)competition pricing.

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Definitions:

Shares

Ownership stakes in a company or financial asset which entitle the holder to a proportional share of the profits, distributed as dividends, if they are announced.

Standard Deviation

A statistical measure of the dispersion or variability of a set of data points around the mean, commonly used to quantify the amount of variation.

Average Rate

The mean value of a set of rates, capturing the central tendency over a specified period or dataset.

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 and 1.