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Author Question: Crush Company makes internal transfers at 155% of full cost. The Soda Refining Division purchases ... (Read 86 times)

bcretired

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on: Mar 6, 2021

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

T4T

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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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bcretired

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Reply 2 on: Mar 6, 2021
Thanks for the timely response, appreciate it

tkempin

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Reply 3 on: Yesterday
Gracias!

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