When there is no excess capacity, the minimum acceptable negotiated transfer price is equal to the price paid to an outside supplier.

A. True

B. False

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Question 39 of 471 Points

If the actual level of activity is 4% more than planned, then the costs in the static budget should be increased by 4% before comparing them to actual costs.

True

False

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Question 40 of 471 Points

Because fixed costs remain the same regardless of how a constrained resource is used, managers should ignore them while making volume trade-off decisions.

A. True

B. False

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Question 41 of 471 Points

For special order decisions, the relevant cost of the special order includes an allocation of fixed overhead.

A. True

B. False