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:

Primary Intention

The process by which a wound heals under conditions that promote regeneration of the injured tissue, leading to minimal scarring.

Secondary Intention

A wound healing process where the wound is left open and fills with granulation tissue before it is eventually covered by epithelial tissue.

Stage 4 Pressure Injury

A severe injury to the skin and underlying tissue characterized by extensive damage, necrosis, or damage to muscle, bone, or supporting structures.

Self-Concept

An individual's comprehensive perception and evaluation of themselves, encompassing self-esteem, appearance, and abilities.