​When a Transfer Price Decreases

question 42

Multiple Choice

​When a transfer price decreases

• A)​the costs of the division using the intermediate product will fall
• B)the profits of the division using the intermediate product will be unaffected
• C)the profits of the division using the intermediate product will fall
• D)​the profits of the division using the intermediate product will rise

Assess the impact of inter-company transactions on consolidated financial statements.

Identify the treatment of intangible assets with indefinite lives and their impairment tests.

Analyze the effect of non-controlling interests on consolidated financial statements.

Apply fair value adjustments in the context of business combinations.