If a Selling Segment Has Excess Capacity,the Opportunity Cost of Selling

question 18

Multiple Choice

If a selling segment has excess capacity,the opportunity cost of selling a product internally equals ________.

• A) the variable costs of producing the product
• B) the contribution margin the producing segment could have received from selling in the external market rather than the internal market
• C) the variable costs plus the avoidable fixed costs of producing the product
• D) zero

---

Definitions:

Leadership Perspective

The viewpoint or approach taken by an individual or group toward leading, influencing, and guiding others within an organizational context.

Situational Leadership Theory

A theory suggesting that the most effective leadership style varies according to the situation, including factors such as the task, people involved, and the environment.

Leadership Training

Educational programs or activities designed to enhance individuals' leadership skills and capabilities.

Leadership Development

The process of expanding the leadership abilities and capacities of individuals to improve leadership effectiveness within an organization or in personal scenarios.