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.

---

Definitions:

Antitrust Violations

Illegal activities under antitrust laws that lead to unfair competition, such as price fixing, monopolies, and other practices that significantly reduce market competition.

Sherman Act

A foundational piece of antitrust legislation in the United States, aimed at preventing monopolies and promoting competition.

Eastman Kodak

A technology company primarily known for its photographic film products, historically significant in the photography industry.

International Harvester

International Harvester was a company specializing in agricultural machinery, construction equipment, and vehicles, known for its tractors and trucks.