In Computing a Transfer Price,the Minimum Price Should Be No

question 124

True/False

In computing a transfer price,the minimum price should be no lower than the incremental costs associated with the goods plus the opportunity cost of the facilities used.

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Definitions:

External Supply of Labour

Refers to the availability of potential employees outside the organization, which can be influenced by factors such as demographic changes and education levels.

Retraining Employees

The process of teaching existing employees new skills or updating their current skills to meet the changing demands of their job roles or the company.

Soft Cost

Expenses that are not directly related to physical construction or labor costs, often including design, legal fees, and permits.

Replacing Workers

The act of finding and hiring new employees to fill vacancies created by departing or terminated staff.