Which of the Following Is the Formula for Setting a Minimum

question 28

Multiple Choice

Which of the following is the formula for setting a minimum transfer price?

• A)Sales less variable cost
• B)Contribution less income taxes and interest
• C)Variable cost to produce/sell + contribution margin forgone from the transfer
• D)Variable cost to produce/sell + allocated fixed costs

---

Definitions:

Concise Language

The use of few words without sacrificing clarity or meaning, aiming for efficiency and effectiveness in communication.

Salt Intake

The total quantity of salt (sodium chloride) consumed by an individual, relevant to dietary health and management of blood pressure.

Blood Pressure

the force exerted by circulating blood on the walls of blood vessels, measured to assess cardiovascular health.

American Medical Association

A professional group that represents the interests of physicians and medical students in the United States, often involved in healthcare policy and research.