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Survey of Accounting (Accounting I)

8th Edition
Carl Warren
ISBN: 9781305961883

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BuyFindarrow_forward

Survey of Accounting (Accounting I)

8th Edition
Carl Warren
ISBN: 9781305961883
Textbook Problem

Why would standard cost be a more appropriate transfer cost between cost centers than actual cost?

To determine

Concept Introduction:

Transfer Price:

Transfer Price is a price at which one division of a company transfers its goods to another division of the same company.

To Indicate:

Why the standard cost would be more appropriate transfer cost between cost centers than actual costs

Explanation

Transfer Price is a price at which one division of a company transfers its goods to another division of the same company...

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