Whenever the Selling Division Must Give Up Outside Sales in Order

question 19

True/False

Whenever the selling division must give up outside sales in order to sell internally, it has an opportunity cost that should be considered in setting the transfer price.

---

Definitions:

Organising Function

A management activity that involves arranging resources and tasks to achieve objectives efficiently and effectively.

Management Functions

Fundamental tasks performed by managers, which typically include planning, organizing, leading, and controlling.

Important

Something of great significance or value.

Organisation Structures

Refers to the way in which a company or organization is arranged to aid in achieving its objectives, often categorizing departments and roles.