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Author Question: Transferring products internally at a market price leads to optimal decisions when all of the ... (Read 53 times)

faduma

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Question 1

Market-based transfer prices are helpful when ________.
◦ the product is specialized
◦ the internal product is different from the products available externally in terms of its quality
◦ the interdependencies of subunits are minimal
◦ the markets are not perfectly competitive

Question 2

Transferring products internally at a market price leads to optimal decisions when all of the following conditions are prevalent except ________.
◦ the market for the transferred product (intermediate product) is perfectly competitive
◦ there are no additional costs to the company from buying in the external market instead of transacting internally
◦ the interdependence of subunits is minimal
◦ there are additional benefits to the company by selling in the external markets instead of transferring internally


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Marked as best answer by faduma on Mar 6, 2021

stano32

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faduma

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Reply 2 on: Mar 6, 2021
Excellent


ghepp

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Reply 3 on: Yesterday
:D TYSM

 

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