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If a Selling Segment Has Excess Capacity,the Opportunity Cost of Selling

Question 18

Multiple Choice

If a selling segment has excess capacity,the opportunity cost of selling a product internally equals ________.


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

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