When considering setting the transfer price at the market price of a product similar to the intermediate good that is already available on the market
a. It is appropriate to ignore that the market price includes a margin above marginal cost
b. It is OK if the product on the market includes costly features your downstream division does not use
c. Consider whether the product on the market is inexpensive because its quality is lower than you use
d. if it is similar enough, it is justification for you producing it in-house
b
You might also like to view...
Why would making a permanent change in a monetary aggregate have an effect on exchange rates in a nation?
a. Permanent rates are mostly set by short-run fluctuations in the rate of interest caused by monetary instability. b. A permanent change is never quite as permanent as policy makers claim-people form expectations on past performance rather than declarations. c. The central bank is always aware of the effect on exchange rates as it formulates policy, so it is very careful to make small permanent changes that have no effect on exchange rates. d. Traders form expectations of future exchange rates based on the anticipated long-run effects of monetary operations
The median household income is
A) the income that separates households into two equal groups. B) the most common household income. C) the mean household income. D) the average household income.