Transfer Prices

question 59

Multiple Choice

Transfer prices

• A)are an accounting devise to allocate the costs and revenues of intermediate products across divisions
• B)increase the 'profits' of the profit center producing the intermediate product when they rise
• C)decrease the 'profits' of the profit center using the intermediate product when they rise
• D)all of the above

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Definitions:

Intangible Asset

An asset that lacks physical substance, such as intellectual property or brand recognition.

Identifiable

Able to be recognized or distinguished as separate from other assets or liabilities within a company.

Separable

Capable of being divided or detached from a larger entity or group, often relating to assets that can be sold, transferred, or dissected from an organization.

Post-acquisition

The period following the acquisition of a subsidiary or business unit, during which the acquired company's assets, liabilities, and operations are integrated and reflected in the parent company's financial statements.