The Range Over Which Two Divisions Will Negotiate a Transfer

question 75

Multiple Choice

The range over which two divisions will negotiate a transfer price is:

• A)anywhere above the supplying division's full cost of the product.
• B)between the supplying division's variable cost and the market price of the product.
• C)between the supplying division's variable cost and its full cost of the product.
• D)between the supplying division's full cost and 180% above its full cost.

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