Multiple Choice
(Appendix 12A) Using the formula in the text, if the lowest acceptable transfer price from the viewpoint of the selling division is $90 and the opportunity cost per unit on outside sales is $40, then the variable cost per unit must be:
A) $90
B) $40
C) $130
D) $50
Correct Answer:
Verified
Correct Answer:
Verified
Q1: (Appendix 12A)Opportunity cost should be ignored in
Q3: (Appendix 12A)Division T of Clocker Company makes
Q4: (Appendix 12A)When a division is operating at
Q5: (Appendix 12A)The DVD Division of Sound Company
Q6: (Appendix 12A)Krenski Corporation has a Parts Division
Q7: (Appendix 12A)The Red River Division of Alto
Q8: (Appendix 12A)Division X makes a part that
Q9: (Appendix 12A)The DVD Division of Sound Company
Q10: (Appendix 12A)Division T of Clocker Company makes
Q11: (Appendix 12A)The selling division in a transfer