Assuming the Selling Division Has Available Capacity, a Negotiated Transfer

question 69

Multiple Choice

Assuming the selling division has available capacity, a negotiated transfer price should be within the range of

• A) fixed cost per unit and the external purchase price.
• B) total cost per unit and the external purchase price.
• C) variable cost per unit and the external purchase price.
• D) variable cost per unit and the opportunity cost.