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:

Work Rules

Standards and guidelines established within a workplace governing employee conduct, performance expectations, and operational procedures.

American Federation of Labor

A national federation of labor unions in the United States, established in 1886, focusing on skilled workers' rights and interests.

National War Labor Board

A government agency established during World War I and again during World War II to mediate labor disputes and prevent strikes that could disrupt production in wartime industries.

U.S. Labor Relations

The relationship between workers and employers in the United States, governed by laws and regulations pertaining to collective bargaining, workers' rights, and dispute resolution.