North Country Auto

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Title: North Country Auto

Essay Details:

Subject: Business

Author: Florence A

Date: January 13, 2015

Level: University

Grade: A

Length: 7 / 1931

Essay text:

It was important that as one department aims to maximize profit, it does not negatively affect other departments. Issues that needed to be resolved include setting of transfer prices between departments, formalizing intercompany transactions, the divisional structure (use of profit or cost center), and the proper allocation of company profits among departments. After doing the analysis, it was decided that transfer price should be set at market price for New to Used Car department and Service to other departments, where as full cost plus mark-up to be used from Parts and Body Shop to other departments...

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