Which of the Following Statements About the Establishment of Transfer

Multiple Choice

Which of the following statements about the establishment of transfer prices for internal sales and purchases between segments is FALSE?

A) In decentralized organizations, transfer pricing policy sometimes leads to dysfunctional decisions.
B) There is seldom a perfect transfer pricing policy.
C) Organizations use a variety of methods to determine transfer prices.
D) In centralized organizations, segment managers set transfer prices.