
(a)
Concept introduction:
In the Transfer Pricing, one unit is transferred from one department to another department. The price of transferred unit is decided through Company's polices. For example: - cost plus margin, fixed price, variable cost etc.
To compute:
The operating income increased of Kaufman Manufacturing if Department quoted price
(b)
Concept introduction:
In the Transfer Pricing, one unit is transferred from one department to another department. The price of transferred unit is decided through Company's polices. For example: - cost plus margin, fixed price, variable cost etc.
To compute:
The operating income increased of appliance division.
(c)
Concept introduction:
In the transfer pricing, unit is transferred from one department to another department. The price of transferred unit is decided considering company polices. For example: - cost plus margin, fixed price, variable cost etc.
To compute:
The operating income increased of electronic division.
(d)
Concept introduction:
In the transfer pricing, unit is transferred from one department to another department. The price of transferred unit is decided consideringcompany polices. For example: - cost plus margin, fixed price, variable cost etc.
The range of acceptable transfer using the negotiated price approach and reasons for the same.

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Chapter 14 Solutions
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