When the Selling Division in an Internal Transfer Has Unsatisfied

question 96

Multiple Choice

When the selling division in an internal transfer has unsatisfied demand from outside customers for the product that is being transferred,then the lowest acceptable transfer price as far as the selling division is concerned is:

• A) the variable cost of producing a unit of product.
• B) the full absorption cost of producing a unit of product.
• C) the market price charged to outside customers,less costs saved by transferring internally.
• D) the amount that the purchasing division would have to pay an outside seller to acquire a similar product for its use.

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Definitions:

Social Experiences

Interactions with others that influence an individual's behavior, beliefs, and feelings.

Genotypic Characteristics

Describes the genetic makeup of an organism and how these genes express themselves in physical and behavioral traits.

Teratogens

Agents, such as chemicals or viruses, that can cause congenital anomalies or developmental disorders in a developing fetus.

Birth Defect

A physical or biochemical abnormality that is present at birth and may cause physical or mental disabilities.