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Hasslehoff Inc

Question 21

Multiple Choice

Hasslehoff Inc.is a multinational company with divisions around the world.Division A in the United States purchases a part from Division G in Canada.There is no outside market for the part because it is used to manufacture another product.The manufacturing cost for the part is $5.Transportation is $1,and commissions are $0.50 but do not need to be paid. What is the transfer price using the cost-plus method?


A) $5.00
B) $5.50
C) $6.00
D) $6.50

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