Tunley Corporation Has Excess Capacity

question 58

Multiple Choice

Tunley Corporation has excess capacity. If the firm desires to implement the general transfer-pricing rule, opportunity cost would be equal to:

• A) zero.
• B) the direct expenses incurred in producing the goods.
• C) the total difference in the cost of production between two divisions.
• D) the contribution margin forgone from the lost external sale.
• E) the summation of variable cost plus fixed cost.

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Definitions:

Fair Credit Reporting Act

A federal law designed to promote accuracy, fairness, and the privacy of information in the files of consumer reporting agencies.

Credit History

A record of a person's or company's past borrowing and repaying behavior, including information about late payments and bankruptcy.

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The process of verifying the personal, financial, and criminal records of an individual, often conducted by employers.

Reasonable Accommodation

A modification or adjustment to a job, work environment, or the way things are usually done, that enables an individual with a disability to apply for a job, perform job functions, or enjoy benefits and privileges of employment.