The minimum transfer price equals:
A)opportunity costs times 125% plus the additional outlay costs.
B)opportunity costs less the additional outlay costs.
C)incremental costs plus opportunity costs.
D)opportunity costs divided by the additional outlay costs.

Question

Quizplus · Accepted Answer

The minimum transfer price is the sum of the incremental costs incurred up to the point of transfer and any opportunity costs that the division incurs by selling internally.

The Minimum Transfer Price Equals