The Engine Division provides engines for the Tractor Division of a company. The standard unit costs for Engine Division are: The engine department has excess capacity. What is the best transfer price to avoid transfer price problems?
A) $1,350
B) $300
C) $900
D) $2,100

Question

The Engine Division provides engines for the Tractor Division of a company. The standard unit costs for Engine Division are:  The engine department has excess capacity. What is the best transfer price to avoid transfer price problems?
A) $1,350 
B) $300 
C) $900 
D) $2,100

Quizplus · Accepted Answer

The Answer of The Engine Division provides engines for the Tractor Division of a company. The standard unit costs for Engine Division are:  The engine department has excess capacity. What is the best transfer price to avoid transfer price problems?
A) $1,350 
B) $300 
C) $900 
D) $2,100

The Engine Division Provides Engines for the Tractor Division of a Company