(Transfer pricing) Two investment centers ol Seattle Technology Company are the Eire Safety Division and the Kitchen...
Question:
(Transfer pricing) Two investment centers ol Seattle Technology Company are the Eire Safety Division and the Kitchen Equipment Division. The Fire Safety Division manufactures an electronic heat sensor that can be sold externally and is also used by the Kitchen Equipment Division in making motors for its kitchen equipment. The following information is available about the heat sensor:
Determine the transfer price under each of the following methods:
a. Total variable cost
b. Full production cost
c. Total variable production cost plus necessary selling costs
d. Market price
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