=+2 Assume that Division As maximum capacity for this product is 1000 units per month and sales

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=+2 Assume that Division A’s maximum capacity for this product is 1000 units per month and sales to the intermediate market are now 800 units. Should 200 units be transferred to Division B? At what transfer price? Assume that, for a variety of reasons, Division A will maintain the $200 selling price indefinitely; that is, Division A is not considering lowering the price to outsiders even if idle capacity exists.

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Cost Accounting A Managerial Emphasis

ISBN: 9781442563377

2nd Edition

Authors: Monte Wynder, Madhav V. Rajan, Srikant M. Datar, Charles T. Horngren, William Maguire, Rebecca Tan

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