Question
A transfer price based on the full cost plus a markup may lead to suboptimal decisions because ____________. a. it leads the buying division to
A transfer price based on the full cost plus a markup may lead to suboptimal decisions because ____________.
| a. | it leads the buying division to regard the fixed costs and the markup of the selling division as a variable cost | |
| b. | it leads the buying division to regard the variable costs and the markup of the selling division as a fixed cost | |
| c. | it leads the buying division to regard the fixed costs and the markup of the selling division as total costs | |
| d. | it leads the buying division to regard the variable costs and the markup of the selling division as total costs | |
| e. | None of the answers. |
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