Answer:
a lack of incentive to control costs because they are simply passed to another department
a lack of departmental profit for the supplying department
suboptimization that may occur as fixed costs per unit may push the transfer price above market price
Explanation:
The limitation that could come after using the variable or full costing in order to set the transfer price involved the lack of the incentive for controlling cost, lack of departmental profit and the supoptimization that could be arise when the fixed cost per unit force the transfer price i.e. over and above to the market price
Therefore the above statements should be considered
I think the reason why the normality of these two proportions is assumed because of n(3.13159) greater than or equal to 10 and n(1 - 3.13159) is greater than or equal to 10. Therefore, for each sample in this research, it must be taken separately.
PROFIT PERHAPS OR INCREASE IN SALES FOR THERE IS NO RIVALS ANYMORE AND HAVE TAKEN THEM OUT