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Author Question: A transfer price based on the full cost plus a markup may lead to suboptimal decisions because ________. (Read 55 times)

Yolanda

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on: Mar 6, 2021
A transfer price based on the full cost plus a markup may lead to suboptimal decisions because ________.
◦ it leads the buying division to regard the fixed costs and the markup of the selling division as a variable cost
◦ it leads the buying division to regard the variable costs and the markup of the selling division as a fixed cost
◦ it leads the buying division to regard the fixed costs and the markup of the selling division as total costs
◦ it leads the buying division to regard the variable costs and the markup of the selling division as total costs
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by Yolanda on Mar 6, 2021

nmyers

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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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Yolanda

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Reply 2 on: Mar 6, 2021
Great answer, keep it coming :)

sultansheikh

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

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