Solution-Determine what would legitimate reason for upper

Determine what would legitimate reason for upper management

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Reference no: EM132542581

Question 1: What would be a legitimate reason for upper management to insist on an internal transfer even though the product could be sourced outside the company at a price that is lower than the company's variable cost?

Option 1: Management is concerned that its manufacturing equipment will soon be obsolete, and it wants to get full use out of it before it happens.

Option 2: Management wants to ensure a secure supply of the product.

Option 3: The company has excess capacity.

Option 4: There is never a legitimate reason that justifies an internal transfer if a product can be sourced outside the company at a price that is lower than the company's variable cost.

Reference no: EM132542581

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Determine what would legitimate reason for upper management

Reference no: EM132542581

Reference no: EM132542581

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