Multiple Choice
All of the following are true regarding transfer prices except which one?
A) Transfer prices occur when a firm engages in divestiture.
B) The transfer price is the internal firm price on an input that input- producing division charges the input- using division.
C) Transfer prices can affect the taxes a firm must pay.
D) Transfer prices are an accounting entry for the within- firm price of an input.
Correct Answer:
Verified
Correct Answer:
Verified
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