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 isMultiple CholceThe 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.

Given the selling division can already sell all the units outside at the market price. So…

When the selling division in an Internal transfer can sell every product eat Its market price, then the lowest acceptable transter price as fer as the seng dion is concnnd Multiple Cholce The amount that the purchasing division would have to pay an outside 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.

When the selling division in an Internal transfer can sell every product eat Its market price, then the lowest acceptable transter price as fer as the seng dion is concnnd Multiple Cholce The amount that the purchasing division would have to pay an outside 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.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 4CMA: Morrisons Plastics Division, a profit center, sells its products to external customers as well as to...

See similar textbooks

Similar questions

If the minimum transfer price of the selling division is less than the maximum transfer price of the buying division, the intermediate product should be transferred internally. Do you agree or disagree? Why?
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? O Variable cost of producing and selling a unit of product. The Purchasing Division's regular purchase price from its external supplier. The full absorption cost of producing a unit of product. O The market price charged to regular customers less any costs saved by transferring internally.
Business Unit A, the supplying business unit, is selling to an outside market. It has excess capacity and can use it to transfer product to the receiving business unit, Business Unit B. Business Unit A does not incur incremental fixed costs in the production of the units supplied to Business Unit B. The formula to calculate the transfer price in this scenario is?
Business Unit A, the supplying business unit, is selling to an outside market. It has excess capacity and can use it to transfer product to the receiving business unit, Business Unit B. Business Unit A does not incur incremental fixed costs in the production of the units supplied to Business Unit B. The formula to calculate the transfer price in this scenario is:? Group of answer choices a. (Total variable costs + incremental fixed cost) ÷ total units supplied b. (Total variable costs + Contribution margin lost) ÷ total units supplied c. Total variable costs ÷ total units supplied d. (Total variable costs + incremental fixed costs + Contribution margin lost) ÷ total units supplied
In a product mix decision, which is the mostimportant factor to consider in order to try tomaximise profit? contribution per unit of the productproduct unit selling pricevariable cost per unit of the productcontribution per unit of a scarce resource used to make the product
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
Compute the following :- 1. Calculate the lowest acceptable transfer price for the seller (Division A)? 2. Calculate the highest acceptable transfer price for the buyer (Division B)? 3. Calculate the range of acceptable transfer prices between the two divisions? 4. Assume Division A offers to sell 15,000 units to Division B for $74 and that Division B refuses this price. What will be the loss in potential prodits for the company whole as a whole
A company manufactures a single product, product Y. It hasdocumented levels of demand at certain selling prices for thisproduct as follows: Demand Selling price per unit Cost per unit Units £ £ 1100 48 24 1200 46 21 1300 45 20 1400 42 19 Required:Using a tabular approach, calculate the marginal revenues andmarginal costs for product Y at the different levels of demand, andso determine the selling price at which the company profits aremaximized.
1. Determine the minimum transfer price that Cutting Division would accept. 2. Determine the maximum transfer price that the Assembly Division would pay. 3. If Cutting Division will accept the offer of Assembly Division, how much is the change in its operating income ? 4. If Cutting Division will make a counter offer of P45.25 per part, how much is the change in the operating income of Assembly Division assuming that its external supplier could not supply its needed quantity?
If a company chooses a price to charge for its product by adding up all the expenses necessary to make the product and then adding in a profit, this is known as: a) Target Costing Ob) Skimming Pricing Oc) Cost-Based Pricing Od) Odd-Even Pricing Oe) Penetration Pricing
What is the estimated selling price of a product less any costs necessary to further process the product beyond the split-off point?
1. how would a cost volume profit analysis would be performed for a company that sells more than one product when the sales mix is known?