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Author Question: Which of the following is true about transfer pricing? (Read 100 times)

biggirl4568

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on: Mar 6, 2021
Which of the following is true about transfer pricing?
◦ The maximum price that the buying division is willing to pay is the higher of the eventual contribution generated from an internal transaction and the price of purchasing from an external party
◦ The selling division must always set a transfer price above the market price of the product to make the transaction economically feasible for the buying division.
◦ There is generally a minimum transfer price the selling division will not go below based on its own cost structure.
◦ The transfer-price range lies between the its fixed cost per unit and the higher of its contribution or price at which the product is available from external suppliers
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by biggirl4568 on Mar 6, 2021

amcvicar

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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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biggirl4568

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

Dominic

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

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