Author Question: If it is particularly difficult for the corporate headquarters to determine the correct transfer ... (Read 38 times)

OSWALD · **on:** Jul 1, 2018

If it is particularly difficult for the corporate headquarters to determine the correct transfer price
a. average costs is a good enough approximation
b. average variable costs is a good enough approximation
c. a similar products market price is a good enough approximation
d. the upstream division could be run as a cost center

Question 2

Suppose the number of medical school graduates continues to increase over the next decade. Which of the following is true?
a. Physicians' salaries must fall.
b. Physicians' salaries must rise.
c. Physicians' salaries will fall only if the demand for medical services falls.
d. Physicians' salaries will fall if the demand for medical services rises more than the supply of physicians rises.
e. Physicians' salaries will rise if the demand for medical services rises more than the supply of physicians rises.