The General Formula for the Minimum Transfer Price Is: Minimum

question 115

Multiple Choice

The general formula for the minimum transfer price is: minimum transfer price equals

• A) fixed cost + opportunity cost.
• B) external purchase price.
• C) total cost + opportunity cost.
• D) variable cost + opportunity cost.

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Definitions:

State-of-the-Art Defense

The state-of-the-art defense is a legal argument used in product liability cases to claim that the product was made in accordance with the highest level of technology and knowledge available at the time of manufacture.

Strict Liability

A legal doctrine that holds a party responsible for damages or harm caused by their actions, without the need to prove negligence or fault.

Strict Product Liability

Liability under which, courts may hold the manufacturer, distributor, or retailer liable for any reasonably foreseeable injured party.

Negligence Per Se

A legal doctrine where an act is considered negligent because it violates a statute or regulation.