When the Selling Division can fill all its regular orders and has enough capacity to supply the Purchasing Division, what is the highest transfer price the Purchasing Division would be willing to pay? Variable cost of producing and selling a unit of product. The Purchasing Division's regular purchase price from its external supplier. O The full absorption cost of producing a unit of product. The market price charged to regular customers less any costs saved by transferring internally

Subject :- Accounting

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

Solve 2, the first answer is the wrong. Find the lowest acceptable transfer price.

H

Many organizations use transfer pricing when transferring products between different divisions of the same organisation. Critically discuss the advantages and disadvantages of the method:  Full cost transfer prices. Note: Define, explain gives examples and advantages and disadvantages

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

Using the formula in the text, if the lowest acceptable transfer price from the viewpoint of the selling division is $95 and the opportunity cost per unit on outside sales is $38, then the variable cost per unit must be:

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.