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Author Question: Transferring products internally at a market price leads to optimal decisions when all of the ... (Read 54 times)

faduma

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on: Mar 6, 2021

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
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by faduma on Mar 6, 2021

stano32

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Reply #1 on: Mar 6, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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faduma

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Reply 2 on: Mar 6, 2021
Excellent

Joy Chen

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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