The overhead allocation method that allocates service department costs without consideration of services rendered to other service departments is the

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ASSIGNMENT #6 EDITED

A general calculation method for transfer prices that achieves goal congruence begins with the additional outlay cost per unit incurred because goods are transformed and then

a. adds the sunk cost per unit to the organization because of the transfer.

b. adds the opportunity cost per unit to the organization because of the transfer.

c. adds the sales revenue per unit to the organization because of the transfer.

d. subtracts the opportunity cost per unit to the organization because of the transfer.

e. subtracts the sunk cost per unit to the organization because of the transfer.

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