In the Bombadier Company, Division a Has a Product That

question 112

Multiple Choice

In the Bombadier Company, Division A has a product that can be sold either to outside customers or to Division B. Information about these divisions is given below: The company uses the opportunity cost approach to transfer pricing. What is the maximum transfer price in Case 1?

• A) $90
• B) $91
• C) $83
• D) $73

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Definitions:

Economist Magazine

A leading international weekly publication focusing on current affairs, international business, politics, technology, and finance.

Cost-Benefit Analysis

A comparison of the marginal costs of a project or program with the marginal benefits to decide whether or not to employ resources in that project or program and to what extent.

Future Use

The intention or plan to deploy resources, products, or services at a later date, often considering the long-term benefits or applications.

Conservation

The act of preserving, protecting, or restoring the natural environment, resources, and biodiversity for future generations.