(d) If HHSB has acquired SSSB, the supply of material from SSSB to HHSB will be at market price, rather than at full manufacturing cost, because the management believe it is better for divisional performance measurement purposes. (i) State your opinion with THREE (3) reasons whether you agree or not with the transfer at market price.

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Chapter1: Financial Statements And Business Decisions
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(d) If HHSB has acquired SSB, the supply of material from SSSB to HHSB will be at
market price, rather than at full manufacturing cost, because the management believe it
is better for divisional performance measurement purposes.
State your opinion with THREE (3) reasons whether you agree or not with the
transfer at market price.
(i)
Transcribed Image Text:(d) If HHSB has acquired SSB, the supply of material from SSSB to HHSB will be at market price, rather than at full manufacturing cost, because the management believe it is better for divisional performance measurement purposes. State your opinion with THREE (3) reasons whether you agree or not with the transfer at market price. (i)
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