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true or false statements 1) when the selling division has enough excess capacity to produce units for internal trade, the lowest transfer price the selling
true or false statements 1) when the selling division has enough excess capacity to produce units for internal trade, the lowest transfer price the selling division should be willing to accept is its incremental manufacturing cost per unit plus the lost contribution margin per unit on outside sales. true or false 2.) from the buying divisions perspective, when a transferred item can be purchaced from an outside supplier, the price charged by the outside supplier represents a lower bound on the price that should be paid on transfers between the selling and buying divisions true or false 3.) when a discounted cash flow methods of capital budgeting are used, the working capital required for a project is ordinarily counted as a cash outflow at the beginning if the project and as a cash inflow at the end of the project when it is recovered true or false 4. if the irr is less than the required rate of return for a project, then the npv of that project is negative. true or false
1) when the selling division has enough excess capacity to produce units for internal trade, the lowest transfer price the selling division should be willing to accept is its incremental manufacturing cost per unit plus the lost contribution margin per unit on outside sales.
true or false
2.)
from the buying divisions perspective, when a transferred item can be purchaced from an outside supplier, the price charged by the outside supplier represents a lower bound on the price that should be paid on transfers between the selling and buying divisions
true or false
3.)
when a discounted cash flow methods of capital budgeting are used, the working capital required for a project is ordinarily counted as a cash outflow at the beginning if the project and as a cash inflow at the end of the project when it is recovered
true or false
4. if the irr is less than the required rate of return for a project, then the npv of that project is negative.
true or false
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