Hamilton Has Excess Capacity

question 95

Multiple Choice

Hamilton has excess capacity. If the company wishes to implement the general transfer-pricing rule, the 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 sum of the variable cost plus the fixed cost.

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Definitions:

[H+]

The concentration of hydrogen ions in a solution, which is a measure of the solution's acidity.

K

The chemical symbol for potassium, a soft silvery-white alkaline metal that is essential for many biological processes and is used in numerous industrial applications.

[H+]

The concentration of hydrogen ions in a solution, often used to express the acidity of a solution.

HAc

The chemical formula notation for acetic acid, a colorless liquid organic compound known for its sour taste and pungent smell, represented by CH3COOH.