The Minimum Transfer Price Equals ________

question 34

Multiple Choice

The minimum transfer price equals ________.

• A) opportunity costs less the additional outlay costs
• B) opportunity costs times 125% plus the additional outlay costs
• C) opportunity costs divided by the additional outlay costs
• D) incremental costs plus opportunity costs

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Definitions:

Double Declining-Balance

An accelerated method of depreciation which doubles the normal depreciation rate, reducing the value of an asset more quickly in its early years.

Straight-Line Method

A technique for calculating an asset's depreciation by uniformly distributing its cost throughout its anticipated lifespan.

Residual Value

Residual value is the estimated value of an asset at the end of its useful life.

Straight-Line

A technique for computing depreciation that uniformly distributes an asset's cost across its lifespan.