Stellar Systems Companys Microprocessor Division sells a computer module to the companys Guidance Assembly Division, which assembles
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Stellar Systems Company’s Microprocessor Division sells a computer module to the company’s Guidance Assembly Division, which assembles completed guidance systems. The Microprocessor Division has no excess capacity. The computer module costs $10,000 to manufacture, and it can be sold in the external market to companies in the computer industry for $13,500.
Required: Compute the transfer price for the computer module using the general transfer-pricing rule.
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Related Book For
Managerial Accounting Creating Value In A Dynamic Business Environment
ISBN: 9781259569562
11th Edition
Authors: Ronald W.Helton, David E. Platt
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