Use the Information Below to Answer the Following Question(s)

question 81

Multiple Choice

Use the information below to answer the following question(s) .Soft Cushion Company is highly decentralized.Each division is empowered to make its own sales decisions.The Assembly Division can purchase cushion stuffing from the Production Division or from external suppliers.The Production Division has been the major supplier of stuffing in recent years.The Assembly Division has announced that two external suppliers will be used to purchase the stuffing at $20 per kilogram for the next year.The Production Division recently increased its unit price to $40.The manager of the Production Division presented the following information; variable cost $32, fixed cost $8, to top management in order to attempt to force the Assembly Division to purchase the stuffing internally.The Assembly Division purchases 20,000 kg per month.
-The profit foregone by the seller if the products or services are transferred internally instead of selling them externally are called

• A)additional costs.
• B)opportunity costs.
• C)outlay costs.
• D)transfer costs.
• E)variable costs.

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Definitions:

Standard Normal Curve

The standard normal curve is a type of normal curve with a mean of 0 and a standard deviation of 1, used as a reference in probability and statistics.

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 and 1 where 0 indicates impossibility and 1 indicates certainty.

Z

A statistical measure used in the context of standard deviations to describe the position of a raw score in relation to the mean of a group of scores.

Sex-Linked Traits

Characteristics determined by genes located on the sex chromosomes, often leading to traits that differ between males and females.