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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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
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
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