Assuming the Selling Division Has Available Capacity, a Negotiated Transfer

question 69

Multiple Choice

Assuming the selling division has available capacity, a negotiated transfer price should be within the range of

• A) fixed cost per unit and the external purchase price.
• B) total cost per unit and the external purchase price.
• C) variable cost per unit and the external purchase price.
• D) variable cost per unit and the opportunity cost.

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Definitions:

Reinforcer

Any stimulus that strengthens or increases the probability of a specific response or behavior by providing a consequence an individual finds rewarding.

Change Her Behavior

The process or act of modifying an individual's actions or reactions through various methods, such as reinforcement or punishment.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with the unconditioned stimulus, eventually comes to trigger a conditioned response.

Salivate

The secretion of saliva in the mouth, often in response to the sight, smell, or thought of food.