Generally, a Transfer of Products Between Two Divisions Should Take

question 18

Multiple Choice

Generally, a transfer of products between two divisions should take place if it

• A)allows one division to benefit from technology developed in another division.
• B)results in increased incremental income to the company as a whole.
• C)increases awareness within the company of activity in the various divisions.
• D)assists the management to evaluate performance of the divisions.

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Definitions:

Efficient

In economic terms, relates to an allocation of resources in which it is impossible to make any one individual better off without making at least one individual worse off.

Opportunity Cost

Opportunity cost represents the value of the best alternative forgone when a decision is made to choose one option over another.

Parking Permit

A document or label allowing a vehicle to be parked in a designated area or facility.

Opportunity Cost

The expense associated with not choosing the second-best option when a decision or choice is made.