The production process at premium casting included eight processes, each of which is currently treated as a cost center with a specific set of operation to perform on each casting produced. following the fourth process's operation the rough have an external market. the fourth process must also supply the fifty process with its direct materials. premium's management wants to develops a new approach to measuring process performance. is premium candiate for using transfer prices.
Refer to the information in SE7. Should premium casting use cost -based, market-based, or negotiated transfer prices? Why?
Jay Patel is planning to open a pizza restaurant next month in Flora, Alabama. He plans to sell his large pizza for a base price of $18 plus $2 for each topping selected. When asked how he arrived at the base price, he said his cousin developed that price for his pizza restaurant in New York City. What pricing rules has Patel not followed?