The Level of the Transfer Price Can Affect the Overall

Multiple Choice

The level of the transfer price can affect the overall company because

A) the higher the transfer price, the higher the operating income.
B) it may impact on the taxes paid by the multinational company.
C) the lower the transfer price, the lower the total costs.
D) internal transfers are always costly to the firm.
E) the transfer price may be higher than the cost-based price.