Macon Corporation Has No Excess Capacity

question 71

Multiple Choice

Macon Corporation has no excess capacity. If the firm desires to implement the general transfer-pricing rule, opportunity cost would be equal to:

• A) zero.
• B) the direct expenses incurred in producing the goods.
• C) the total difference in the cost of production between two divisions.
• D) the contribution margin forgone from the lost external sale.
• E) the summation of variable cost plus fixed cost.

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