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Quratien 1.9- Thampanen Division. The Switch Division is operatieg at flall capucity and demanded that the Motos division pay the price charged to outside cuaturnes

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Quratien 1.9- Thampanen Division. The Switch Division is operatieg at flall capucity and demanded that the Motos division pay the price charged to outside cuaturnes nather thas the actual full manelacturiag costs as it has not necesaarily in the best interest of Thempocen. Klein has recuested that the corporate Acounting Department staby ahemative tranufer pricing and optimine overall company perfivemance. The thros transfer peicieg merthode being consedernd are listed below. One of these methods will be selecked, and will be applibd unifimily acrous all divisions. - Standand full manefastaring costs ples markip. - Market selling price of the products being tranifernod - Outlay (out-of-pocket) cunts incurned to the point of unanufer plas opportunity cost per unit. REOUIRED: 1. Identify and explain two positive and two negative behaviocal implications that can arive from employing a negotiated transfer pnice system fort goods that ane exchangod between frvisions. 2. Identify and explain two behavional porbleans that can arise fruen wing actual full (absorption) manufacturing costs as a transfer price. changes from its current transfer pricing policy to a rcvised transfer pricing policy that it applies uniformly to all divisions. 4. Discuss the likely behavior of both "heying" and "selling" divisiceal manapers for each of the following transfar pricing methods being considered by Thoenpson Corporation. a. Standand full manufichuring costs ples markup. b. Market selling price of the products being tranafcrnod c. Oatley (out-of-pocket) costs incurned to the point of urinsfer plas opportunity cost per unit

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