Fifth edition Alnoor Bhimani Charles T. Horngren Srikant M. Datar Madhav V. Rajan Farah Ahamed



Download 1.72 Mb.
View original pdf
Page391/469
Date01.12.2021
Size1.72 Mb.
#57828
1   ...   387   388   389   390   391   392   393   394   ...   469
solutions-manual-to-bhimani-et-al-management-and-cost-accounting-pearson-2012-1
Sell as raw lumber
Sell as finished lumber
Raw Lumber Division Division revenues
€200
€110
Division variable costs
100 100
Division operating income
€100 €10
Finished Lumber Division Division revenues
€0
€275
Transferred-in costs

110
Division variable costs

125
Division operating income
€0 €40 The Raw Lumber Division will maximise reported divisional operating income by selling raw lumber, which is the action preferred by the company as a whole. The Finished Lumber Division will maximise divisional operating income by selling finished lumber, which is contrary to the action preferred by the company as a whole.
3
Transfer price at market price = €200 per 100 board-metres.


Download 1.72 Mb.

Share with your friends:
1   ...   387   388   389   390   391   392   393   394   ...   469




The database is protected by copyright ©ininet.org 2024
send message

    Main page