Robin Company Records Reveal the Following: the Variable Costs

question 181

Multiple Choice

Robin Company records reveal the following: The variable costs of Division Y will be incurred whether it buys from Division X or from an outside supplier. If Division X is not at full capacity, the lowest transfer price at which it would be willing to sell to Division Y would be:

• A) $24
• B) $8
• C) $32
• D) $22

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Definitions:

Fads

Temporary, highly popular trends or behaviors that spread quickly and are followed with enthusiasm, but fade away just as quickly.

Demographic Shifts

Changes in the characteristics of a population over time, which can include age, ethnicity, gender distribution, and so forth.

Social Change

The transformation of culture, behavior, social institutions, and social structure over time, often seen as a necessary aspect of societal progress or development.

Emergent Norm Theory

A sociological hypothesis that posits individuals in a crowd behave not out of pre-existing norms, but from norms that emerge and are accepted within the crowd during the event.