Which of the Following Information Should Be Taken into Account

question 99

Multiple Choice

Which of the following information should be taken into account when using a negotiated transfer price method to determine transfer price?
i. External market price
ii. Savings in selling and distribution costs when transferring internally
iii. Excess capacity in the selling division
iv. Excess capacity in the buying division

• A) ii and iii
• B) i, ii and iii
• C) ii, iii and iv
• D) i, ii, iii and iv

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Definitions:

Accounting Principle

Fundamental guidelines and rules that govern the accounting process and financial reporting of businesses.