Multiple Choice
Division A produces a component and wants to sell it to Division B.Which of the following best describes the relationship of the transfer price to Division A and Division B?
A) revenue to Division A and a cost to Division B
B) revenue to Division B and a cost to Division A
C) revenue to Division A and no effect on Division B
D) a cost to Division B and no effect on Division A
Correct Answer:
Verified
Correct Answer:
Verified
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