The General Principle on Setting Transfer Prices That Are in the Organization's

question 31

Multiple Choice

The general principle on setting transfer prices that are in the organization's best interests is:

• A) outlay cost plus opportunity cost of the resource at the point of transfer.
• B) variable costs plus opportunity cost of the resource at the point of transfer.
• C) lost contribution margin less the allocated fixed costs for the selling division.
• D) gross margin for the buying division plus the gross margin for the selling division.

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Definitions:

Relative Area

A term often used in chromatography and spectroscopy to compare the size or intensity of features such as peaks or signals, relative to others in a dataset.

Signals

In the context of science and technology, signals represent variations in a physical quantity or quantities that convey information.

Splitting

A phenomenon observed in NMR spectroscopy where a signal is divided into multiple peaks due to interactions between nuclear spins.

Signals

In spectroscopy, the representations of energy interactions with samples, providing information about molecular structure.