Which of the Following Denotes Minimum Transfer Price

question 40

Multiple Choice

Which of the following denotes minimum transfer price?

• A) Minimum transfer price = Incremental cost per unit incurred up to the point of transfer + Opportunity cost per unit to the selling subunit
• B) Minimum transfer price = Total cost per unit incurred up to the point of transfer + Sunk cost per unit to the selling subunit
• C) Minimum transfer price = Current cost per unit incurred up to the point of transfer + Historical cost per unit to the selling subunit
• D) Minimum transfer price = Variable cost per unit incurred up to the point of transfer + Fixed cost per unit to the selling subunit

---

Definitions:

Leadership Processes

These are the actions, behaviors, and practices leaders engage in to influence the motivation, attitudes, and behaviors of others to achieve organizational goals.

Empowerment

The process of granting employees the authority, confidence, and resources to take initiative and make decisions within their roles.

Advantages

The conditions or circumstances that put someone or something in a favorable or superior position.

Risks

Potential events or conditions that could lead to a negative outcome affecting objectives.