1. Transfer prices should be set at a. marginal cost of the selling division plus a reasonable profit amount b. marginal cost of the selling division unless it is evaluated as a profit center. c. the opportunity cost of he asset being transferred. d. at whatever price is negotiated between the selling and buying divisions. 2. Which of the following organizational forms requires the strongest management oversight to ensure coordination functions?

1. Transfer prices should be set at a. marginal cost of the selling division plus a reasonable profit amount b. marginal cost of the selling division unless it is evaluated as a profit center. c. the opportunity cost of he asset being transferred. d. at whatever price is negotiated between the selling and buying divisions. 2. Which of the following organizational forms requires the strongest management oversight to ensure coordination functions?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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