Which of the following methods is being described by a transfer price equal to 130% of full cost? a. market-based b. cost-based c. negotiated d. administered
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Which of the following methods is being described by a transfer price equal to 130% of full cost?
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- The company uses the opportunity cost approach to transfer pricing. What is the minimum transfer price in Case 1?Determining the transfer price as the price at which the product or service transferred could be sold to outside buyers is known as the Oa. cost price approach Ob. negotiated price approach Oc. market price approach Od. revenue price approachQ- 7: prices are needed? What is meant by Transfer price and why transfer Q- 8: opportunity cost, and sunk cost. Define the following terms: differential cost,
- What would be the transfer price if Division X uses full absorption cost plus markup?Question Content Area The approach that requires the transfer price to be less than the market price but greater than the supplying division's variable costs per unit is called the _____ approach. a.negotiated cost b.cost price c.standard cost d.market priceA transfer pricing arrangement that uses the price that would be charged to an external customer is a______. A. market-based approach B. negotiated approach C. cost approach D. decentralized approach
- A transfer pricing structure that considers the opportunity costs of selling to internal rather than external customers uses_______. A. the cost approach B. the general transfer pricing approach C. the market-based approach D. the opportunity cost approachThis transfer prices basis is considered to be the most inferior one a. variable cost transfer pice b. full cost transfer price c. negotiatied transfer price d. external market transfer price e. dual transfer priceThe three common approaches to setting transfer prices include: the _____ price approach, where the transfer price is the price at which the product or service transferred could be sold to outside buyers; the _____ price approach allows the managers to agree among themselves on a transfer price; and the _____ price approach, where cost is used to set transfer prices. cost; market; negotiated market; cost; negotiated market; negotiated; cost negotiated; market; cost none of the above
- Which of the following transfer price approaches is used when the transfer price is set at the amount sold to outside buyers? a. variable price b. cost price c. negotiated price d. market priceAnswer two questions please 1- What is meant by Transfer price and why transfer prices are needed? 2- Distinguish between Traceable Cost and Common Cost and give examples of each.Select Among the choices, this transfer prices basis is considered as the most inferior one: a. variable cost transfer pice b. full cost transfer price c. negotiatied transfer price d. external market transfer price e. dual transfer price