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Unformatted text preview: Fixed OH Spending variance = Actual fixed costs – budgeted fixed costs Final Review Sheet C294 Sales Price Variance = AQ * (AP – SP) Final Review Sheet C294 Transfer Pricing Minimum Transfer Price – leaves the selling division no worse if the goods were sold to an internal division than if the goods were sold to an external party Min. Transfer Price = outlay costs + opportunity costs = unit variable costs + relevant fixed costs + CM from outside customers = Outside customer selling price Maximum Transfer Price – price that would leave the buying division no worse off if an input were purchased from an internal division than if the same good were purchased externally If max. price is higher than min. price, two divisions SHOULD transfer If max. price is lower than min. price, two divisions SHOULD NOT transfer...
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- Winter '09
- Total fixed costs, inal Review Sheet, Review Sheet C294