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    Managerial Accounting Study Set 13
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    Exam 29: Transfer Pricing
  5. Question
    One Advantage of Using Actual Cost Incurred as the Transfer
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One Advantage of Using Actual Cost Incurred as the Transfer

Question 5

Question 5

True/False

One advantage of using actual cost incurred as the transfer price is that it provides a strong incentive for the producing division to control its costs.

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