Use This Information to Answer the Following Question If an Accumulation of $6,000 Is Desired at the End

question 113

Multiple Choice

Use this information to answer the following question. $\begin{array}{|c|c|c|}\hline \text { Periods } & \text { Future Value of } \$ 1 \text { at } 12 \text { Percent } & \begin{array}{c}\text { Future Value of Ordinary Annuity of } \\\$ 1 \text { at } 12 \text { Percent }\end{array} \\\hline 1 & 1.120 & 1.000 \\\hline 2 & 1.254 & 2.120 \\\hline 3 & 1.405 & 3.374 \\\hline\end{array}$
If an accumulation of $6,000 is desired at the end of three years,what amount must be deposited at the end of each of the three years?

• A) $1,778.30
• B) $20,244.00
• C) $4,270.46
• D) $8,430.00

Evaluate the impact of reduced shipping and selling costs on transfer pricing.

Compare internal transfer pricing to external purchasing options.

Understand the concept of transfer pricing and factors influencing the minimum acceptable transfer price.

Recognize the importance and methods of allocating fixed and variable costs to operating departments for performance evaluation.

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Definitions:

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