The Transaction Amount for One Unit of Goods When the Transaction

question 182

Multiple Choice

The transaction amount for one unit of goods when the transaction occurs between divisions within the same company is the ________.

• A) transfer price
• B) opportunity cost
• C) variable cost
• D) sales price

---

Definitions:

Relevant Range

The range of activity within which the assumptions about fixed and variable cost behaviors remain valid for a specific business.

Fixed Overhead Cost

Fixed expenditures unaffected by changes in production or sales volume, like leasing fees, employee compensation, and protection plans.

Maintenance Cost

Maintenance cost refers to the expenses incurred for the upkeep and repair of equipment, buildings, or machinery to keep them in good working condition.

Fixed Cost

A cost that remains constant, regardless of changes in the level of production or sales activities.