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Author Question: Which of the following denotes minimum transfer price? (Read 83 times)

michelleunicorn

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on: Mar 6, 2021

Question 1

The seller of Product A has no idle capacity and can sell all it can produce at $59 per unit. Outlay cost is $20. What is the opportunity cost, assuming the seller sells internally?
◦ $20
◦ $39
◦ $59
◦ $79

Question 2

Which of the following denotes minimum transfer price?
◦ Minimum transfer price = Incremental cost per unit incurred up to the point of transfer + Opportunity cost per unit to the selling subunit
◦ Minimum transfer price = Total cost per unit incurred up to the point of transfer + Sunk cost per unit to the selling subunit
◦ Minimum transfer price = Current cost per unit incurred up to the point of transfer + Historical cost per unit to the selling subunit
◦ Minimum transfer price = Variable cost per unit incurred up to the point of transfer + Fixed cost per unit to the selling subunit
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by michelleunicorn on Mar 6, 2021

juicepod

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Reply #1 on: Mar 6, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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michelleunicorn

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Reply 2 on: Mar 6, 2021
YES! Correct, THANKS for helping me on my review

sultansheikh

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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