Cost Accounting: A Managerial Emphasis, 15th Edition
Cost Accounting: A Managerial Emphasis, 15th Edition
15th Edition
ISBN: 9780133803815
Author: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
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Chapter 22, Problem 22.30P

1.

To determine

The example showing a problem of goal congruence that can arise if the C Company continues to use a price of 150% of the full cost and the policy of decentralization.

2.

To determine

The operating income of each division under dual transfer-pricing method when 420,000 pounds are harvested during June 2014.

3.

To determine

To explain: The reason for the difference in the operating incomes computed in 2. part from the operating income from harvesting and processing 420,000 pounds.

4.

To determine

To explain: The problems that can arise if C implements the dual transfer prices.

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