An Internal Transfer Between Two Divisions Is in the Best

question 76

Multiple Choice

An internal transfer between two divisions is in the best economic interest of the entire organization when:

• A) the variable costs plus the opportunity cost of the selling division is greater than the external price for the buying division.
• B) the variable costs plus the opportunity cost of the selling division is less than the external price for the buying division.
• C) there is excess capacity in the buying division with no alternative use.
• D) there is no established market prices for the buying division.

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Definitions:

Compromised Human Dignity

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Conditions or effects directly caused by the consumption of alcohol.

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An infection transmitted through sexual contact, caused by bacteria, viruses, or parasites.

Self-mutilation

The deliberate harm or alteration of one’s own body tissue without suicidal intent.