menu-iconExamlexExamLexServices

Discover

Ask a Question
  1. All Topics
  2. Topic
    Business
  3. Study Set
    Management Accounting Study Set 6
  4. Exam
    Exam 16: Responsibility Accounting, Performance Evaluation and Transfer Pricing
  5. Question
    If a Product Has an External Market and Divisions Are
Solved

If a Product Has an External Market and Divisions Are

Question 37

Question 37

True/False

If a product has an external market and divisions are treated as profit centres, cost-based transfer prices can often lead to suboptimal decisions.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q32: Return on investment can be decomposed into

Q33: Investment centre managers are held responsible only

Q34: Managers are held responsible for revenues

Q35: Which of the following is an

Q36: Herbert Feigl Ltd had the following results

Q38: PNY Pty Ltd reported operating profit of

Q39: A segment with an ROI of 30%

Q40: Transfer pricing policies can affect a company's

Q41: How are research and development costs

Q42: Return on investment is typically calculated as

Examlex

ExamLex

About UsContact UsPerks CenterHomeschoolingTest Prep

Work With Us

Campus RepresentativeInfluencers

Links

FaqPricingChrome Extension

Download The App

Get App StoreGet Google Play

Policies

Privacy PolicyTerms of ServiceHonor CodeCommunity Guidelines

Scan To Download

qr-code

Copyright © (2025) ExamLex LLC.

Privacy PolicyTerms Of ServiceHonor CodeCommunity Guidelines