The devision agrees a transfer price between themselves. This price may not reflect opportunity cost by producing and selling products. Reflects bargaining prowess of individual mangers.
Answer:
Production opportunities, time preferences for consumption, risk, inflation. Explanation: The cost of money is the interest rate that lenders charge borrowers, and is determined by the supply and demand of funds.
One of the main reasons that stocks do not reflect the health of the economy most of us experience is the rise of stock buybacks. Companies often push stocks higher, partly and arguably, to raise the value of the stock options of their management by buying them on the open market.
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Answer: work in process inventory
Explanation:
The direct labor costs refers to the costs that is incurred by a company which has to do with the payment to the employees involved in the production activities of the company.
When a company assigns factory labor costs to jobs, then the direct labor cost is debited to the work in process inventory.
