If the Lowest Acceptable Transfer Price from the Viewpoint of the Selling

question 21

Multiple Choice

If the lowest acceptable transfer price from the viewpoint of the selling division is $75 and the opportunity cost per unit on outside sales is $24, then the variable cost per unit must be:

• A) $24 per unit
• B) $99 per unit
• C) $51 per unit
• D) $75 per unit

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Definitions:

Process Approach

A method in various disciplines that emphasizes the importance of procedures, stages, or steps in accomplishing a goal or solving a problem.

Entrepreneurship

The process of designing, launching, and running a new business, typically starting as a small business, such as a startup.

Social Enterprise

organizations that operate commercially to address social problems, combining business practices with social objectives.

Philanthropic

Pertaining to the act of giving money, time, or effort to support a cause or mission that benefits society, often without financial or material return to the giver.