In Setting Internal Transfer Prices, the Minimum Price That the Selling

question 40

Multiple Choice

In setting internal transfer prices, the minimum price that the selling division would accept is:

• A)A price that will result in a profit to the selling division.
• B)A price that will result in a profit to the purchasing division.
• C)Its variable cost of the product plus opportunity costs lost by the transfer.
• D)Its variable cost plus an internal profit margin.

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