Division a Produces a Component and Wants to Sell It

question 104

Multiple Choice

Division A produces a component and wants to sell it to Division B.Which of the following best describes the relationship of the transfer price to Division A and Division B?

• A)revenue to Division A and a cost to Division B
• B)revenue to Division B and a cost to Division A
• C)revenue to Division A and no effect on Division B
• D)a cost to Division B and no effect on Division A

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Definitions:

Erik Erikson

A psychologist known for his theory on psychological development of human beings.

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A developmental stage between childhood and adulthood characterized by significant physical, psychological, and social changes.

Adolescence

A developmental stage that marks the transition from childhood to adulthood, characterized by significant physical, psychological, and social changes.

Life Cycle

The series of stages through which an organism passes from birth through maturity, reproduction, and eventually death.