In the Formula for the Minimum Transfer Price, Opportunity Cost

question 89

Multiple Choice

In the formula for the minimum transfer price, opportunity cost is the __________ of the goods sold externally.

• A) variable cost
• B) total cost
• C) selling price
• D) contribution margin

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Definitions:

Social Stratification

A system of classifying individuals and groups based on socioeconomic status, often leading to unequal opportunities and rewards.

Lower-middle Class

Refers to a social group that is between the working class and the middle class, often characterized by moderate income levels, some post-secondary education, and white-collar or skilled blue-collar jobs.

Blue Collar

A description characterizing skilled and semi-skilled workers who perform manual labor or work in service or clerical jobs.

Upper Class

An elite and largely self-sustaining group who possess most of the country’s wealth; they constitute about 1 percent of the U.S. population.