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 important to recognize 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. It is OK if 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

a

Economics

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Reunification of East and West Germany created which sequence of events?

I. an increase in German rates of interest II. a boom in German output and a shift to the right of the German IS curve III. large reunification costs financed by increased government spending IV. an increase in rates of interest in ERM nations A) IV, I, III, I B) III, II, I, IV C) I, II, III, IV D) IV, III, II, I

Economics

The current account balance is

A) the supply of a country's exports less the country's own demand for imports. B) the demand for a country's exports plus the country's own demand for imports. C) the country's own demand for imports less the demand for a country's exports. D) the demand for a country's exports less the country's own demand for imports. E) the country's federal reserves minus the national debt.

Economics