When There Is Unused Capacity,________

question 137

Multiple Choice

When there is unused capacity,________.

• A) the transfer-price range lies between the its variable cost per unit and the higher of its contribution or price at which the product is available from external suppliers
• B) the transfer-price range lies between the maximum price at which the selling division is willing to sell and the minimum price the buying division is willing to pay
• C) the transfer-price range lies between the minimum price at which the selling division is willing to sell and the maximum price the buying division is willing to pay
• D) the transfer-price range lies between the its fixed cost per unit and the higher of its contribution or price at which the product is available from external suppliers

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Definitions:

Equipment

Tools, machinery, or devices required for a specific task, operation, or to facilitate the functioning of a system.

Backup Files

Copies of data or computer files stored separately from the original to be used in case the original data is lost or damaged.

Hard Drive

A data storage device that uses magnetic storage to store and retrieve digital information using one or more rigid rapidly rotating disks coated with magnetic material.

Reverse Chronological

An arrangement or display of events in order of occurrence with the most recent event first and the earliest last.