Per unit opportunity cost to selling subunit of company, is added into per unit incremental cost is incurred at point of transfer to calculate
A. minimum operating cost
B. maximum operating costs
C. maximum transfer price
D. minimum transfer price
Answer: Option D
Solution(By Examveda Team)
Per unit opportunity cost to selling subunit of company, is added into per unit incremental cost is incurred at point of transfer to calculate minimum transfer price. The minimum transfer price equals the incremental cost to create one product. The incremental price includes direct labor, direct material and direct overhead costs but excludes the expenses the transferring center would have incurred whether or not it made the product.Related Questions on Management Accounting
A. resourcing
B. value acquiring
C. production
D. value acquaintance
Examining of past performance, exploring alternative and planning future is
A. learning
B. alternating
C. examining
D. deciding
Time that a company takes to create and produce a new product is classified as
A. management factor
B. time factor
C. customer factor
D. chain factor
Purpose of management accounting is to
A. past orientation
B. help banks make decisions
C. help managers make decisions
D. help investors make decision
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