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A limitation of transfer prices based on actual cost

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74. A limitation of transfer prices based on actualcost is that theya.can lead to suboptimal decisions for thecompany as a wholeb.lackclarityandadministrativeconveniencec.charge inefficiencies to the departmentthat is transferring the goodsd.must be adjusted adjusted by somemarkup75. The relevance of a particular cost to adecision is determined by the76. Which is most relevant to a manufacturingequipment-replacement decision?77. Total unit costs are78. Among the costs relevant to a make-or-buydecision, include variable manufacturingcosts as well asa.real estate taxesb.unavoidable costsc.avoidable fixed costd.plant depreciation79. A company's approach to an insourcing oroutsourcing decision80. Idle capacity in the interim will generateshort-term benefit in accepting sales at pricethat81. In gross profit analysis, if the cost variance iszero, such variance indicates that

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Term
Fall
Professor
April Uy
Tags
C Avoidability

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