A variable-cost-plus price transfer is ?

Question

A. The price on the open market.

B. The price representing the cash outflows of the supplying division plus the contribution to the supplying division from an outside sale.

C. The price set by charging for variable costs plus an additional markup, but less than full (absorption) cost.

D. The price usually set by an absorption costing calculation.

مستخدم محذوف‎ · Answer

Answer (C) is correct.

This permits top management to enter the decision process and dictate that a division transfer at variable cost plus some appropriate amount.

Martin Jacques Malan · Answer

A pricing method in which the selling price is established by adding a markup to total variable costs.

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN · Answer

Answer option >>>>>>>>>>> D. The price usually set by an absorption costing calculation.