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A company owns two businesses: a flour mill and a cracker company. The cracker company uses flour from the flour mill. The firm treats the
A company owns two businesses: a flour mill and a cracker company. The cracker company uses flour from the flour mill. The firm treats the flour mill as a cost center and does not allow the firm to sell flour in the external market for flour. In this scenario, the transfer price of flour sent from the flour mill to the cracker company would likely be close to... Question 14 options: the price of flour in the external flour markets. the marginal cost of flour. the marginal cost of crackers. the average cost of flour
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