If opportunity cost per barrel is $45 per unit, incremental cost per barrel is $65, then minimum transfer price will be
A. $45
B. $110
C. $20
D. $65
Answer: Option B
Solution(By Examveda Team)
Minimum transfer price = Opportunity cost per barrel + incremental cost per barrel= $45 + $65
= $110.
This Question Belongs to Management >> Management Accounting
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