Per unit opportunity cost to selling subunit of company, is added into per unit incremental cost is incurred at point of transfer to calculate

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

To answer this question, you must understand each answer choice in the multiple-choice above. So you will find the right answer.

A. minimum operating cost

Wrong. Because minimum operating cost is a bad choice for an answer.

B. maximum operating costs

It is Wrong Because maximum operating costs does not include the correct answer.

C. maximum transfer price

This is also wrong, maximum transfer price Not completely the correct answer.

D. minimum transfer price

it is True, because minimum transfer price is the best and correct answer to the above question. so, choose this answer.

The Answer From Per unit opportunity cost to selling subunit of company, is added into per unit incremental cost is incurred at point of transfer to calculate

So the correct answer is D i.e. minimum transfer price. Hopefully, it can help work on your problem and can add to your insight as well.