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    Business
  3. Study Set
    Cost Accounting
  4. Exam
    Exam 22: Management Control Systems, Transfer Pricing, and Multinational Considerations
  5. Question
    Transfer Prices Do Not Affect Managers Whose Compensation Is Directly
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Transfer Prices Do Not Affect Managers Whose Compensation Is Directly

Question 84

Question 84

True/False

Transfer prices do not affect managers whose compensation is directly dependent on an organization's operating income because transfer prices affect only divisional profits and not the organization's profit.

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