An appropriate transfer price between two divisions of The Stark Company can be determined from the following data: (CIA adapted) What is the natural bargaining range for the two divisions?
A)Between $20 and $50.
B)Between $50 and $70.
C)Any amount less than $50.
D)$50 is the only acceptable transfer price.

Question

An appropriate transfer price between two divisions of The Stark Company can be determined from the following data: (CIA adapted)  What is the natural bargaining range for the two divisions?
A)Between $20 and $50. 
B)Between $50 and $70. 
C)Any amount less than $50. 
D)$50 is the only acceptable transfer price.

Quizplus · Accepted Answer

The Answer of An appropriate transfer price between two divisions of The Stark Company can be determined from the following data: (CIA adapted)  What is the natural bargaining range for the two divisions?
A)Between $20 and $50. 
B)Between $50 and $70. 
C)Any amount less than $50. 
D)$50 is the only acceptable transfer price.

An Appropriate Transfer Price Between Two Divisions of the Stark