If a Company Allows Division Managers to Negotiate a Cost-Based

question 97

True/False

If a company allows division managers to negotiate a cost-based transfer price,it is better to use actual costs rather than standard costs.Otherwise,the selling division has no motivation to control costs.

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Definitions:

Geologic Timescale

A chronologic subdivision of geologic time depicting the sequence of geologic events, including those represented by fossils; ages of boundaries are assigned through numeric dating of key rock units.

Earth Materials

Substances that constitute the Earth, including rocks, minerals, soil, and water.

Density

A measure of how much mass is present per given volume of a substance.

Meters Per Second

A unit of speed or velocity in the International System of Units (SI), indicating how many meters an object moves in one second.