If Capacity Constraints Prevent a Segment from Meeting Internal and External

Multiple Choice

If capacity constraints prevent a segment from meeting internal and external demand for a product,the opportunity cost of selling internally equals ________.

A) the variable cost of producing the product
B) the controllable costs of producing the product
C) the contribution margin the producing segment could have received from selling in the external market rather than the internal market
D) the variable cost plus the avoidable fixed cost of producing the product