What Is the Price the Selling Division Charges for a Component

question 127

Multiple Choice

What is the price the selling division charges for a component purchased by the buying division of the same company?

• A) market price
• B) transfer price
• C) cost-based price
• D) economic value added price

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Definitions:

Carbohydrates

Organic compounds occurring in foods and living tissues, including sugars, starch, and cellulose, which provide energy or contribute to structure.

Lymph

A body fluid formed within the tissue spaces and circulated throughout the body.

Glucose

A simple sugar that serves as the main source of energy for the body's cells.

Protein

Large molecules composed of one or more long chains of amino acids, essential for the structure, function, and regulation of the body's cells, tissues, and organs.