You are the general manager of the machining products division of a diversified manufacturing company in Des Moines, Iowa. You primarily produce machining products for sale to wholesalers around the world. However, you periodically get requests from other divisions in your company to purchase your products. You treat these purchase requests the same as a purchase request from a non-affiliated entity. You sell your machining products to other internal divisions at a price that is equivalent to a market-based cost.This is an example of which of the following types of business pricing?
A. Freight absorption pricing
B. Uniform geographic pricing
C. Transfer pricing
D. Zone pricing
E. Base-point pricing
Answer: C
You might also like to view...
Normal costing is the sum of actual direct materials, actual direct labor, and actual overhead
Indicate whether the statement is true or false
Orchid Incorporated recently recognized that some changes needed to be implemented. As a result, an entirely new training program has been developed and is ready for implementation. Continuing down the current path could be dangerous for the future of the company, but this drastic change will not be easy. The staff has had some trouble adjusting, but most agree that the industry has changed. The stage of change being undergone here is ______.
a. experimentation b. exploration c. acceptance d. commitment
The tasks during the ______ phase of the CPFR include exception management and performance assessment.
a. analysis b. strategy and planning c. execution d. demand and supply management
Gillette developed the Fusion and Mach 3 shaving systems. These products created superior customer value as a result of the company core competency in research and development.
Answer the following statement true (T) or false (F)