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

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Marketing Channels

The pathways or routes through which goods and services flow from the producer to the consumer, including physical and online distributions.

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