The Presence of Idle Capacity in the Selling Division May

question 47

Multiple Choice

The presence of idle capacity in the selling division may increase

• A)the incremental costs of production in the selling division.
• B)the market price for the good.
• C)the price that a buying division is willing to pay on an internal transfer.
• D)a negotiated transfer price.

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Definitions:

Acid Rain

Precipitation whose acidity destroys forests and the ecosystems of lakes. It is formed by sulfur dioxide and other gases emitted by coal-burning power plants, pulp and paper mills, and motor-vehicle exhaust.

Precipitation

Any form of water, such as rain, snow, sleet, or hail, that falls from the atmosphere to the Earth's surface.

Genetic Pollution

The uncontrolled spread of genetic information, often as a result of human activities, leading to unwanted alterations in populations or species.

Ecological Dangers

Risks and threats to the environment and ecosystems, including pollution, climate change, and loss of biodiversity.