The Engine Division Provides Engines for the Tractor Division of a Company.The

question 100

Multiple Choice

The Engine Division provides engines for the Tractor Division of a company.The standard unit costs for Engine Division are as follows: What is the best transfer price to avoid transfer price problems?

• A) $2,730
• B) $600
• C) $1,800
• D) $2,100

---

Definitions:

Inflation

A rise in the general level of prices in an economy; an increase in an economy’s price level.

Legal Tender

Any form of currency that by law must be accepted by creditors (lenders) for the settlement of a financial debt; a nation’s official currency is legal tender within its own borders.

Political Candidates

Individuals who run for office in governmental elections, seeking to hold a position within a government body.

Consumer Sovereignty

The theory that consumer preferences determine the production of goods and services, making consumers the driving force of the economy.