If There Is a Competitive Market for the Product Being

question 85

Multiple Choice

If there is a competitive market for the product being transferred internally,using the ________ as the transfer price will lead to ________.

• A) full cost; goal congruence
• B) variable cost; goal congruence
• C) full cost plus profit; goal congruence
• D) market price; goal congruence

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Definitions:

Documents of Title

Legal documents that provide proof of ownership of property, such as bills of lading or warehouse receipts.

Farm Products

Items derived from farming activities, including crops, livestock, and products directly obtained from livestock or crops (e.g., milk, eggs, wool).

Consumer Goods

Products and commodities that are bought and used by individuals or households for personal use.

Chapter 7

A provision of the U.S. Bankruptcy Code that deals with liquidation, where a debtor's non-exempt assets are sold to pay creditors.