The Most Valid Reason for Using Something Other Than a Full-Cost-Based

question 152

Multiple Choice

The most valid reason for using something other than a full-cost-based transfer price between units of a company is because a full-cost price

• A)is typically more costly to implement.
• B)does not ensure the control of costs of a supplying unit.
• C)is not available unless market-based prices are available.
• D)does not reflect the excess capacity of the supplying unit.

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Definitions:

Tay-Sachs Disease

A genetic disorder that results in the destruction of nerve cells in the brain and spinal cord.

Heterozygous

Having two different alleles for a particular gene, one inherited from each parent.

Huntington's Disease

A hereditary neurodegenerative disorder characterized by motor, cognitive, and psychiatric symptoms.

Albinism

A group of genetic disorders resulting in little or no production of the pigment melanin, affecting the skin, hair, and eyes.