Question 1
An advantage of using budgeted costs for transfer pricing among divisions is that ________.
◦ overall corporate profitability is usually higher
◦ it usually provides a basis for optimal decision making
◦ the divisions know the transfer price in advance
◦ it promotes subunit autonomy
Question 2
Crush Company makes internal transfers at 155% of full cost. The Soda Refining Division purchases 41,000 containers of carbonated water per day, on average, from a local supplier, who delivers the water for $58 per container via an external shipper. To reduce costs, the company located an independent supplier in Illinois who is willing to sell 41,000 containers at $38 each, delivered to Crush Company's Shipping Division in Missouri. The company's Shipping Division in Missouri has excess capacity and can ship the 41,000 containers at a variable cost of $12.50 per container. What is the total cost of purchasing the water from the Illinois supplier and shipping it to the Soda Division?
◦ $1,558,000
◦ $2,070,500
◦ $2,378,000
◦ $512,500
The internal structures of the eye.
The internal structures of the outer, middle, and inner ear.
Internal structures at the back of the eye.
Internal rotation of the shoulders
Internal Renal Anatomy
Evolution of internal membranes