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Author Question: The goal of setting a transfer price is to (Read 5 times)

Facerro

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on: Feb 5, 2023

Question 1

Which of the following is the formula for setting a minimum transfer price?
◦ Sales less variable cost
◦ Variable cost to produce/sell + allocated fixed costs
◦ Contribution less income taxes and interest
◦ Variable cost to produce/sell + contribution margin forgone from the transfer

Question 2

The goal of setting a transfer price is to
◦ maximize the profit of the transferring division.
◦ maximize the overall profit of the organization.
◦ ensure that all divisions have the resources they need to operate.
◦ motivate managers to behave in the best interest of the firm as a whole.
Managerial Accounting ¦ Davis ¦ 4th Edition
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Marked as best answer by Facerro on Feb 5, 2023

spicyzack

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Reply #1 on: Feb 5, 2023
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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Facerro

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Reply 2 on: Feb 5, 2023
YES! Correct, THANKS for helping me on my review

kilada

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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