ch 11 se8

Refer to the information in SE7. Should Premium Castings use cost-based, market-based, or negotiated transfer prices? Why? The Cookie Division at Sweet Products has been treated as a cost center since the company was founded. Recently, management decided to change the performance evaluation approach and treat its processing divisions as profit centers. Each division is expected to earn a 20 percent profit on its total production costs. One of products is chocolate chip cookie dough. The Cookie Division supplies this dough to the Packaged Cookies Division, and it also sells it to another company. Cookie Division's total production cost for the dough is $2.40 per pound. It sells the dough to the Refer to the information in SE7. Should Premium Castings use cost-based, market-based, or negotiated transfer prices? Why? The Cookie Division at Sweet Products has been treated as a cost center since the company was founded. Recently, management decided to change the performance evaluation approach and treat its processing divisions as profit centers. Each division is expected to earn a 20 percent profit on its total production costs. One of products is chocolate chip cookie dough. The Cookie Division supplies this dough to the Packaged Cookies Division, and it also sells it to another company. Cookie Division's total production cost for the dough is $2.40 per pound. It sells the dough to the