When the Selling Division in an Internal Transfer Has Unsatisfied

question 124

Multiple Choice

When the selling division in an internal transfer has unsatisfied demand from outside customers for the product that is being transferred,then the lowest acceptable transfer price as far as the selling division is concerned is:

• A)variable cost of producing a unit of product.
• B)the full absorption cost of producing a unit of product.
• C)the market price charged to outside customers,less costs saved by transferring internally.
• D)the amount that the purchasing division would have to pay an outside seller to acquire a similar product for its use.
• E)all the costs of producing a unit of product.

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Definitions:

Brain Activity

The processes and actions performed by the brain, encompassing everything from neural impulses to complex thoughts.

Sensory Information

Data that is perceived and processed by the sensory organs, such as sight, sound, smell, taste, and touch, which is then interpreted by the brain.

Dissociation Theory

A psychological concept suggesting that individuals can split certain aspects of their cognition or experience from the main stream of consciousness, leading to conditions like dissociative identity disorder.

Placebo

A harmless pill, medicine, or procedure prescribed more for the psychological benefit to the patient than for any physiological effect.