Chapter 10, Problem 22Q

To determine

Concept introduction:

Managerial Decision:

Decision making plays an important role in the management. The decisions taken by managers are called managerial decisions. These decisions include setting target growth rates, hiring or firing employees, and deciding what products to sell. A manager’s decisions are taken on the basis of quantitative as well as the qualitative measures. The managerial decision includes the decisions like make or buy, accept or reject new offers, sell or further process, etc. These decisions are taken on the basis of relevant costs.

To Indicate:

The meaning of minimum and maximum transfer prices.