Division Alpha Can Purchase a Required Part from an Outside

question 39

Multiple Choice

Division Alpha can purchase a required part from an outside supplier at $35.Division Beta will supply the part at a transfer price of $38.50.Division Alpha's manager should

• A) pay the $38.50 price to Division Beta.
• B) tell his immediate supervisor that Division Beta is being unreasonable.
• C) negotiate an appropriate transfer price with the manager of Division Beta.
• D) buy from the outside supplier.

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Definitions:

Motivational Force

The internal or external stimuli that drive an individual towards taking action or pursuing goals.

Commitment

The dedication or strong loyalty that an individual or group has toward an organization, cause, or goal.

Formula Box

A field in spreadsheet applications where you enter or edit calculations or functions to be applied to cell data.

Insertion Point

The cursor's location in a document or field where new text or data will be entered.