Which of the Following Statements Is Tme About Transfer Pricing

Multiple Choice

Which of the following statements is tme about transfer pricing in the context of multidivisional organizational structure?

A) It can severely damage coordination and corporate culture.
B) It occurs when one division's products are priced higher than another division's products.
C) It often results in a uniform increase in profitability among all the divisions.
D) It refers to the changes in product prices that occur when certain functions from the divisions are centralized.
E) It helps corporate managers create the maximum profitability out of the multidivisional strategy.