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:

Compliance

The act of conforming to the wishes, demands, or regulations of others, often to fit in with a group or society.

Conformity

The act of matching attitudes, beliefs, and behaviors to group norms or societal standards.

Social Preference

The phenomena by which individuals display a greater affinity or liking for some people, objects, or activities over others within a social context.

Reciprocal Concessions

A negotiation strategy where each party makes adjustments to their demands to reach a mutual agreement.