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  3. Study Set
    Managerial Accounting for Undergraduates
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    Exam 11: Flexible Budgets, Segment Analysis, and Performance Reporting
  5. Question
    If a Profit Center Has Excess Capacity to Supply Another
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If a Profit Center Has Excess Capacity to Supply Another

Question 118

Question 118

True/False

If a profit center has excess capacity to supply another profit center with a component for production, then the minimum transfer price is equal to the market price of the component.

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