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    Managerial Accounting Study Set 21
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    Exam 12: Performance Evaluation in Decentralized Organizations
  5. Question
    Divisional Managers Have a Keen Interest in the Transfer Price
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Divisional Managers Have a Keen Interest in the Transfer Price

Question 49

Question 49

True/False

Divisional managers have a keen interest in the transfer price because their individual compensation often depends on the profit reported by their division.

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