A General Calculation Method for Transfer Prices That Achieves Goal

question 32

Multiple Choice

A general calculation method for transfer prices that achieves goal congruence begins with the additional outlay cost per unit incurred because goods are transformed and then

• A) adds the opportunity cost per unit to the organization because of the transfer.
• B) subtracts the opportunity cost per unit to the organization because of the transfer.
• C) adds the sunk cost per unit to the organization because of the transfer.
• D) subtracts the sunk cost per unit to the organization because of the transfer.
• E) adds the sales revenue per unit to the organization because of the transfer.

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Definitions:

Feeling

An emotional state or reaction that consciously emerges from experiences, perceptions, or interactions.

Control

in psychology, relates to an individual's ability to influence or direct their environment and outcomes affecting their life.

Optimists

Individuals who tend to maintain a positive outlook on life, expecting the best possible outcomes in various situations.

Pessimists

Individuals who tend to see the worst aspect of things or believe that the worst will happen, often characterized by a lack of hope or confidence in the future.