Arise when full cost plus a markup is used as transfer price

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A. What problems can arise when full cost plus a markup is used as a transfer price?

B. There are six categories of costs associated with inventor able goods for sale. What are they?

C. How would the handling of transfer prices differ in a perfectly competitive market versus one in which there is unused capacity?

D. Canseco Enterprises uses 84,000 units of Part 256 in manufacturing activities over a 300-day work year. The usual lead time for the part is 6 days; occasionally, however, the lead time has gone 8 days. The company now desires to adjust its safety stock policy. The increase in safety stock size and the likely effect on stock out costs and carrying costs, respectively, would be

Reference no: EM13749908

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