In General, If a Potential Transfer Has No Effect on Divisional

question 30

Multiple Choice

In general, if a potential transfer has no effect on divisional profits:

• A) no transfer will take place between the divisions.
• B) managers will be indifferent between making the transfer or not.
• C) the organization should not intervene to force a transfer.
• D) the optimal transfer price is the opportunity cost for the buying division.

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