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

question 75

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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