The overall objective in the determination of a transfer price is to
a) minimize the cost to the purchasing division.
b) minimize the return of the selling division.
c) maximize the return of the selling division.
d) maximize the return to the whole company.
d) maximize the return to the whole company.
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The income statement for Sweet Dreams Company is divided by its two product lines, blankets and pillows, as follows
Blankets Pillows Total Sales revenue $820,000 $300,000 $1,120,000 Variable costs 465,000 240,000 705,000 Contribution margin 355,000 60,000 415,000 Fixed costs 66,000 76,000 142,000 Operating income (loss) $289,000 $(16,000 ) $273,000 If Sweet Dreams can eliminate total fixed costs of $28,000 by dropping the pillows line, operating income will increase by $16,000. Indicate whether the statement is true or false
Only those consequential damages that are known or foreseeable can be collected
Indicate whether the statement is true or false