A benefit of using a market-based transfer price is: a. the economic viability and profitability of each division can be evaluated individually. b. the profits of the transferring division are sacrificed for the overall good of the corporation. c. the profits of the division receiving the products are sacrificed for the overall good of the corporation. d. none of the abovee

When negotlating a transfer price, whlch prlce Is most acceptable to the selling divislon if they are operating with Idle capacity? Multiple Choicel the price must cover at least the variable manufacturing costs of the selling division the price must be less than the variable manufacturing costs of the selling division the price must cover at least the variable manufacturing costs of the buying division the price must cover at least the selling price to outside customers

Please answer questions A, B and C. thank you

Explain the objectives of transfer pricing and describe the advantages anddisadvantages of various transfer pricing alternatives.

When the selling division is a full capacity, the goal congruent transfer price will be the: market price actual full cost actual variable cost standard full cost actual variable cost plus markup

When the selling division in an Internal transfer can sell every product at Its market price, then the lowest acceptable transter price as far as the seling diion is concened is Multiple Cholce The amount that the purchasing division would have to pay an outslde seller to acquire a similar product for Its use. The fixed cost of producing a unit of product. The market price charged to outside customers. The variable cost of producing a unit of product. Total cost of producing a unit of product.

Which is the best description of a dual transfer price?   A)  The receiving division is charged the market value of the item transferred while the supplying division is credited with the standard variable cost B)  The receiving division is credited the market value of the item transferred while the supplying division is charged with the standard variable cost C)  The receiving division is charged the standard variable cost transferred while the supplying division is credited with the market value of the item D)  The receiving division is credited the standard variable cost transferred while the supplying division is charged with the market value of the item