If the selling division has excess capacity, the transfer price should be set at its:
A. selling price less the variable costs.
B. outlay costs plus the foregone contribution to the organization of making the transfer internally.
C. outlay costs.
D. selling price less the variable costs plus the foregone contribution to the organization of making the transfer internally.
Answer: C
You might also like to view...
Historically, tattoos have been associated with people who are considered ________
A) social outcasts B) members of the ruling class C) members of fraternities D) members of religious orders
The best perspective to take when considering organization change is ______.
A. to make desired changes without affecting the organization as a whole B. a closed system approach C. a total system perspective D. none of these
When organizational members are consious and intentional about the changes to be made, this is considered _____ change.
a. planned b. unplanned c. first-order d. second-order
When was the future of e-books firmly established?
A. in 2000, with the release on Amazon of Stephen King's novella, Riding the Bullet B. in 2007, with the introduction of Amazon's Kindle C. in 2009, when Barnes & Noble introduced its Nook e-reader D. in 2010, when Apple introduced the first iPad