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Page 4 of 4 Individual Assignment AQ060-3-2-MAT QUESTION 3 Nursery Plant Lid has three divisions that grow and sell plants: East Division, West Division and

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Page 4 of 4 Individual Assignment AQ060-3-2-MAT QUESTION 3 Nursery Plant Lid has three divisions that grow and sell plants: East Division, West Division and South Division. Recently, the South Division acquired a pottery factory that manufactures pottery pots. These pots can be sold externally and internally. Company policy permits each manager to decide whether to buy or sell internally. Each division is evaluated on the basis of retum on investment (ROD. REQUIRED Explain the following transfer prices set according to: (b) (c) Market price, Cost-based, and Negotiated. (Total: 20 marks) (Grand Total: 80 marks) Page 4 of 4 Individual Assignment AQ060-3-2-MAT QUESTION 3 Nursery Plant Lid has three divisions that grow and sell plants: East Division, West Division and South Division. Recently, the South Division acquired a pottery factory that manufactures pottery pots. These pots can be sold externally and internally. Company policy permits each manager to decide whether to buy or sell internally. Each division is evaluated on the basis of retum on investment (ROD. REQUIRED Explain the following transfer prices set according to: (b) (c) Market price, Cost-based, and Negotiated. (Total: 20 marks) (Grand Total: 80 marks)

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