Question
you are the Accountant for a Manufacturing Plant. The factory produces dresses, and the corporation as a whole includes other factories that produce fabric as
you are the Accountant for a Manufacturing Plant. The factory produces dresses, and the corporation as a whole includes other factories that produce fabric as well as other clothing items. Your corporation operates as a decentralized organization.
Your dress-making factory needs the fabric produced in some of the other plants within the corporation. You need to help set up a transfer pricing system to determine how much your plant pays the other plant for the fabric. You can determine the transfer prices to be 1) transferred at variable cost, 2) transferred at full cost, or 3) transferred at full cost plus profit.
Which would be most advantageous to your dress-making plant? Explain why using evidence and examples.
Which would be most advantageous to the corporation as a whole? Explain why using evidence and examples.
Your discussion board response will be based on information from the textbook and/or other sources. All sources must be cited correctly using APA format.
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