(1) A segment of Mega Inc., manufactures and sells blankets. The various models
ID: 2637092 • Letter: #
Question
(1) A segment of Mega Inc., manufactures and sells blankets. The various models of blankets are produced in a single factory using stable technology. They are sold by the sales department, also located in the factory. The segment is most probably accounted for as a(n)
A- cost center.
B - revenue center.
C - profit center.
D - investment center.
E - none of these.
(2) Division A produces a component and wants to sell it to Division B. The transfer price is
A - venue to Division 'A' and a cost to Division B.
B - revenue to Division 'B' and a cost to Division A.
C - revenue to Division 'A' and no effect on Division B.
D - a cost to Division 'B' and no effect on Division A.
A- cost center.
B - revenue center.
C - profit center.
D - investment center.
E - none of these.
(2) Division A produces a component and wants to sell it to Division B. The transfer price is
A - venue to Division 'A' and a cost to Division B.
B - revenue to Division 'B' and a cost to Division A.
C - revenue to Division 'A' and no effect on Division B.
D - a cost to Division 'B' and no effect on Division A.
Explanation / Answer
1.
B - revenue center.
2.C - revenue to Division 'A' and no effect on Division B.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.