Which of the Following Denotes Minimum Transfer Price

question 40

Multiple Choice

Which of the following denotes minimum transfer price?

• A) Minimum transfer price = Incremental cost per unit incurred up to the point of transfer + Opportunity cost per unit to the selling subunit
• B) Minimum transfer price = Total cost per unit incurred up to the point of transfer + Sunk cost per unit to the selling subunit
• C) Minimum transfer price = Current cost per unit incurred up to the point of transfer + Historical cost per unit to the selling subunit
• D) Minimum transfer price = Variable cost per unit incurred up to the point of transfer + Fixed cost per unit to the selling subunit

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Definitions:

Hull's Model

A theoretical framework by Clark Hull that describes behavior as the result of internal drives, habits, and the outcomes of previous actions.

Associative Approach

A learning theory emphasizing the formation of associations between stimuli and responses.

Acquired Drives

Secondary drives that are learned through experience, such as ambition or desire for achievement, rather than those based on biological needs.

Instrumental Conditioning

A conditioning procedure in which the environment constrains the opportunity for reward and a specific behavior can obtain reward.