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Adelaide company has two divisions. division a produces specialized materials that can be sold on the open market or used by division b. division b refines the materials produced by division a and sells them on the open market. adelaide wants to use a transfer costing system that will maximize total firm profits. division a has excess capacity. if division b buys produce from the open market, division a’s machines will sit idle. what cost should be charged to division b for the materials? a. cost-plusb. variable costc. market price
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