!.) The transfer price approach that will result in the largest contribution margin to the buying division is the:
a. negotiated price approach.
b. market-based approach.
c. time-and-material pricing approach.
d. cost-based approach.
2.) A revenue that differs between alternatives and makes a difference in decision-making is called a(n):
a. irrelevant revenue.
b. incremental revenue
c. unavoidable revenue.
3.) Target cost is comprised of:
a. variable manufacturing and selling and administrative costs only.
b. variable and fixed manufacturing costs only.
c. total manufacturing and selling and administrative costs.
d. fixed manufacturing and selling and administrative costs only.