Examlex
Which of the following is the most significant disadvantage of a cost-based transfer price? (CIA adapted)
Output
The aggregate production of either goods or services by an organization, commercial sector, or the economy as a whole.
Diminishing Returns Effect
A principle in economics where increasing one factor of production, while keeping others constant, will at some point yield lower per-unit returns.
Variable Cost
Expenses that vary directly with the level of production output, such as raw materials, labor, and energy costs.
Output
The total amount of goods or services produced by a company, sector, or economy within a specific time period.
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