When the Selling Division in an Internal Transfer Has Unsatisfied

question 67

Multiple Choice

When the selling division in an internal transfer has unsatisfied demand from outside customers for the product that is being transferred, then the lowest acceptable transfer price as far as the selling division is concerned is:

• A) the full absorption cost of producing a unit of product.
• B) the amount that the purchasing division would have to pay an outside seller to acquire a similar product for its use.
• C) all the costs of producing a unit of product.
• D) variable cost of producing a unit of product.
• E) the market price charged to outside customers, less costs saved by transferring internally.

Explain various target marketing strategies and their relevance to reaching noncustomers.

Describe the consumer buying process and the impact of marketing activities on consumer decisions.

Understand the factors influencing the consumer information search process.

Recognize the differences between consumer and business buying processes and market characteristics.

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Definitions:

Ethical Intensity

The degree of importance or impact that an ethical issue has on the stakeholders, which is determined by various factors including potential harm or benefits.

Moral Imperative

A principle or obligation that is ethically necessary or required, compelling a person to act in a certain way.

Ethical Intensity

The degree of importance or impact an ethical issue has, based on its consequences, social consensus, and probability of harm.

Federal Law

Legislation enacted by the national government of a sovereign state that applies to the entire country.