Multiple Choice
When there is unused capacity,________.
A) the transfer-price range lies between the its variable cost per unit and the higher of its contribution or price at which the product is available from external suppliers
B) the transfer-price range lies between the maximum price at which the selling division is willing to sell and the minimum price the buying division is willing to pay
C) the transfer-price range lies between the minimum price at which the selling division is willing to sell and the maximum price the buying division is willing to pay
D) the transfer-price range lies between the its fixed cost per unit and the higher of its contribution or price at which the product is available from external suppliers
Correct Answer:
Verified
Correct Answer:
Verified
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