Categorize the following transfer prices as being market-based, negotiated, or cost-based: a. The…

Categorize the following transfer prices as being market-based, negotiated, or cost-based:

a.       The market price of a widget is $25, the cost is $15, and the actual transfer price is $22, the market price less cost of sales commissions.

b.      The manager of the packaging responsibility center agrees to package a special order for the shipping department for the cost of the packaging materials.

c.       The Wilton Ball Division sells baseballs to the Wilton Combo Division for $5.00 each. The Ball Division sells a two-ball package to Dick’s Sporting Goods for $10.

d.      After consulting with stand-alone accounting firms, the Accounting Division charges each of the 13 manufacturing plants in the company $545 per month for accounting services.

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