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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Definitions:

Epithelial Tissue

Tissue that lines hollow organs and covers surfaces.

Periodontitis

A severe gum infection that damages the soft tissue and destroys the bone that supports your teeth.

Gingivitis

An inflammation of the gums, typically caused by a bacterial infection, which can lead to redness, swelling, and bleeding.

Deciduous Teeth

Also known as baby or milk teeth, these are the first set of teeth in human development, which are eventually replaced by permanent teeth.