Top Posters
Since Sunday
q
10
9
b
8
b
7
n
7
m
7
b
7
k
7
y
7
d
7
6
g
6
Home Q & A Board Other Fields Homework Help Business Management
New Topic  
skully skully
wrote...
Go to Answer
Posts: 1384
Rep: 0 0
6 years ago
How does a manager know which transfer price to judge performance if distress prices prevail in the short-run versus the long-run?
Textbook 
Managerial Accounting: Decision Making and Motivating Performance

Managerial Accounting: Decision Making and Motivating Performance


Edition: 1st
Authors:
Read 44 times
2 Replies
Managerial Accounting: Decision Making and Motivating Performance
University of Pittsburgh
Replies
Answer verified by a subject expert
noitulovenoitulove
wrote...
#1
Top Poster
Posts: 852
Rep: 14 0
6 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
In the short run, the manager of the selling subunit should supply the product or service at the distress price as long as it exceeds the incremental costs of supplying the product or service. If the manager buys internally at a price above the current market price it will hurt the buying division's short-run operating income. The long-run average market price will provide a better measure of the long-run profitability and viability of the supplier division.
1

Related Topics

skully Author
wrote...
#2
6 years ago
Thank you ever so much for this generous answer.
Managerial Accounting: Decision Making and Motivating Performance
University of Pittsburgh
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  309 People Browsing
 214 Signed Up Today
Start New Topic Take the Tour Study Tips Study ToolsNew Topics Trending Browse by Textbook
Live Chat
Related Images
  
 957
  
 781
  
 273
Your Opinion
Previous poll results: Should Ph.D.'s be addressed as doctors?