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  2. Topic
    Business
  3. Study Set
    Cost Accounting
  4. Exam
    Exam 22: Management Control Systems, Transfer Pricing, and Multinational Considerations
  5. Question
    One Advantage of Prorating the Difference Between a Maximum and Minimum
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One Advantage of Prorating the Difference Between a Maximum and Minimum

Question 1

Question 1

True/False

One advantage of prorating the difference between a maximum and minimum transfer price of a product to be moved between divisions is that it saves the cost of objective audits of transfer pricing.

Correct Answer:

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