When a division is operating at full capacity, the transfer price to other divisions should not include opportunity costs.

Name: When a division is operating at full capacity, the transfer price to other divisions should not include opportunity costs.
Brand: Quizplus
Rating: 4.8 (34 reviews)

Question

Quizplus · Accepted Answer

When a division is operating at full capacity, the transfer price should include opportunity costs, as selling internally means forgoing potential external sales.

When a Division Is Operating at Full Capacity, the Transfer