A General Calculation Method for Transfer Prices That Achieves Goal

question 32

Multiple Choice

A general calculation method for transfer prices that achieves goal congruence begins with the additional outlay cost per unit incurred because goods are transformed and then

• A) adds the opportunity cost per unit to the organization because of the transfer.
• B) subtracts the opportunity cost per unit to the organization because of the transfer.
• C) adds the sunk cost per unit to the organization because of the transfer.
• D) subtracts the sunk cost per unit to the organization because of the transfer.
• E) adds the sales revenue per unit to the organization because of the transfer.

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