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    Business
  3. Study Set
    Cost Accounting
  4. Exam
    Exam 22: Management Control Systems, Transfer Pricing, and Multinational Considerations
  5. Question
    If the Selling Subunit Is Operating at Capacity, the Opportunity
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If the Selling Subunit Is Operating at Capacity, the Opportunity

Question 73

Question 73

True/False

If the selling subunit is operating at capacity, the opportunity cost of transferring a unit internally rather than selling it externally is equal to the market price minus the variable cost.

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