Some Managers Prefer to Use Cost Rather Than Market Price

question 95

Multiple Choice

Some managers prefer to use cost rather than market price in controlling transfers between divisions. If cost is to be used, then it should be:

• A) full cost.
• B) direct cost.
• C) variable cost.
• D) standard cost.

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Definitions:

Bushels

A unit of volume that is used in the United States for measuring agricultural produce such as grains.

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A statistical model that describes data distribution patterns that follow a bell curve or Gaussian distribution.

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A public marketplace where local farmers and vendors sell their fresh produce and goods directly to consumers.