If Using Actual Costs for Cost-Based Transfer Pricing, the Supplying

question 153

True/False

If using actual costs for cost-based transfer pricing, the supplying division lacks incentive to control its costs.

---

Definitions:

Prefer

To prefer means to favor or choose something or someone over other options.

Current Income

The income generated from an investment or asset in the form of interest, dividends, or other earnings, typically over a year.

High Dividend Policy

A strategy employed by companies to distribute a significant portion of earnings to shareholders in the form of dividends.