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Which of the following statements about cost-based transfer prices is/are true? Statement i states, A transfer price set at standard variable cost plus a mark-up
Which of the following statements about cost-based transfer prices is/are true? Statement i states, A transfer price set at standard variable cost plus a mark-up provides an incentive for the supplying business to make the transfer. Statement ii states, Absorption cost-based transfer prices are good for the company as a whole because all costs are considered. Statement ili states, Transfer prices should be based on standard costs rather than actual costs since the cost of inefficiency should not be passed on. Select one: O a. i and i O b. ll and it O c. I and Ill O d. All of the given answers
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