Harem Corporation Case Study

1124 Words 5 Pages
Register to read the introduction… P172,500 C. P265,400
B. P230,000 D. P251,400
1. [v]. Harem Corporation consists of two divisions, Mining and Builders. The Mining makes black steel, a product that can be used in the product that the Builders division makes. Both divisions are considered profit centers. The following data are available concerning black steel and the two divisions: Mining Builders
Average units produced
…show more content…
A. P2 per unit C. P7 per unit
B. P4 per unit D. P9 per unit
1. The sequence that reflects increasing breadth of responsibility is
A. cost center, investment center, profit center
B. cost center, profit center, investment center
C. profit center, cost center, investment center
D. investment center, cost center, profit center 1. In responsibility accounting the most relevant classification of costs is
A. fixed and variable C. discretionary and committed
B. incremental and nonincremental D. controllable and noncontrollable 1. If a firm operates at capacity, the transfer price should be the:
A. external market price. C. actual cost.
B. differential cost. D. standard cost.
1. The basic methods used in transfer pricing are
A. variable or full costs C. market price or negotiated

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