Multiple Choice
All of the following are true regarding transfer prices except which one?
A) The transfer price is the internal firm price on an input that input- producing division charges the input- using division.
B) The transfer price is the internal firm price on an input that input- using division charges the input- producing division.
C) Law in many nations state that a transfer price must equal the price charged to an independent customer.
D) Transfer prices can affect the taxes a firm must pay.
Correct Answer:
Verified
Correct Answer:
Verified
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