Engine Division
The Engine Division provides engines for the Tractor Division of a company.The standard unit costs for Engine Division are as follows:

Refer to the Engine Department.The division 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

Engine Division
The Engine Division provides engines for the Tractor Division of a company.The standard unit costs for Engine Division are as follows:

Refer to the Engine Department.The division 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 Engine Division
The Engine Division provides engines for the Tractor Division of a company.The standard unit costs for Engine Division are as follows:

Refer to the Engine Department.The division has excess capacity.What is the best transfer price to avoid transfer price problems?
A)$1,350 
B)$300 
C)$900 
D)$2,100

Engine Division the Engine Division Provides Engines for the Tractor Division of Division