Categorize the following transfer prices as being market-based, negotiated, or cost-based: a. The market price of a
Question:
Categorize the following transfer prices as being market-based, negotiated, or cost-based:
a. The market price of a widget is $25, the cost is $15, and the actual transfer price is $22, the market price less cost of sales commissions.
b. The manager of the packaging responsibility center agrees to package a special order for the shipping department for the cost of the packaging materials.
c. The Wilton Ball Division sells baseballs to the Wilton Combo Division for $5.00 each. The Ball Division sells a two-ball package to Dick’s Sporting Goods for $10.
d. After consulting with stand-alone accounting firms, the Accounting Division charges each of the 13 manufacturing plants in the company $545 per month for accounting services.
Step by Step Answer:
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello