When a division is operating at capacity

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Reference no: EM131286292

1. When a division is operating at capacity, the transfer price should be ________.

A. a market-based transfer price

B. a cost-based transfer price

C. based on opportunity cost

D. the total manufacturing cost

2. On the costs of goods manufactured schedule, the item raw materials inventory (ending) appears as a(n)

A. addition to raw materials purchases.

B. addition to raw materials available for use.

C. subtraction from raw materials available for use.

D. subtraction from raw materials purchases.

Reference no: EM131286292

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