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:

Abstract Rights

Refers to theoretical rights that are not tied to any concrete physical or legal reality but are considered fundamental ethical principles.

Kohlberg's Theory

A psychological framework proposed by Lawrence Kohlberg that suggests moral development occurs in six stages, from obedience and punishment orientation to universal ethical principles.

Reciprocity

A mutual exchange of privileges or benefits, as in the mutual reduction of tariffs or the return of favors between individuals or states.

Conventional Morality

Refers to a level in moral development where individuals adhere to rules and norms, particularly those valued in their society or by authority figures, to maintain social order and gain approval.