Solved

Hamilton Has No Excess Capacity

Question 86

Multiple Choice

Hamilton has no excess capacity. If the company wishes to implement the general transfer-pricing rule, the opportunity cost would be equal to:


A) zero.
B) the direct expenses incurred in producing the goods.
C) the total difference in the cost of production between two divisions.
D) the contribution foregone from the lost external sale.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions