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    Exam 24: Cost Allocation and Responsibility Accounting
  5. Question
    When a Division Is Operating at Full Capacity, the Transfer
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When a Division Is Operating at Full Capacity, the Transfer

Question 109

Question 109

Multiple Choice

When a division is operating at full capacity, the transfer price must be:


A) based on opportunity cost.
B) a market-based transfer price.
C) a cost-based transfer price.
D) total manufacturing cost.

Correct Answer:

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