Multiple Choice
The "floor" in transfer pricing is
A) the transfer price that would leave the buying division no worse off if an input is purchased from an internal division.
B) the transfer price that would leave the selling division no worse off if the good is sold to an internal division.
C) the transfer price that would leave the buying division worse off if an input is purchased from an internal division.
D) none of these.
Correct Answer:
Verified
Correct Answer:
Verified
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