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Assume the Small Components Division of Martin Manufacturing produces a video card used in the assembly of a variety of electronic products.The highest acceptable transfer price for the divisions is the Small Components Division's

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Answer:

Minimum Transfer Price.

Explanation:

The price that is acceptable by Small Components Division when transferring to the internal division must cover the variable manufacturing cost (less internal savings) plus opportunity cost incurred.

This price is known as the Minimum Transfer Price for the Transferring Division (Small Components Division) and would never accept a transfer with any price lower than this.

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