Assume the Thread Division has excess capacity. The Garment Division wants the Thread Division to furnish them additional spools of thread that could be made using the excess capacity. In a negotiated transfer price, the Thread Division should accept as a minimum any transfer price that exceeds the
a) total cost of producing spools for outside sales.
b) variable costs of producing the additional spools for the Garment Division.
c) contribution margin and outside spool sales.
d) foregone contribution margin on outside spool sales.
Answer: b) variable costs of producing the additional spools for the Garment Division.
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An agent may legally represent all principals in the same transaction if:
a. he discloses that he is collecting a commission from each of the principals with the knowledge of the others. b. he obtains the consent of all the parties in the agency relationship. c. he has informed all principals that he is the agent for each principal. d. All of the above.
Rmon2
a. operates only with Layer 2 addresses b. extends RMON1's capabilities and operates with Layer 3 addresses c. operates only with CMIP, and not with SNMP d. none of the above