COST ACCT-W/ACCESS >C< NON-MAJORS
COST ACCT-W/ACCESS >C< NON-MAJORS
15th Edition
ISBN: 9781269768191
Author: Horngren
Publisher: PEARSON C
Question
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Chapter 22, Problem 22.21E

1.

To determine

The operating income of two divisions by using transfer pricing under given conditions.

Given information:

The mining division transfers their final product to metal division at market price or at 110% of manufacturing cost.

Total unit of toldine transfer to metals division is 200,000 units

2.

To determine

Rewards to each division manager

3.

To determine

The method is preferred by mining division manager for transfer pricing.

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