No Matter How Low the Transfer Price, the Manager of the Selling

question 43

True/False

No matter how low the transfer price, the manager of the selling division should sell the division's product to other company divisions in the interests of overall company profitability.

---

Definitions:

Endorsed

Officially approved or supported, or signed on the back to transfer ownership or to show agreement.

Negotiability

The feature of a financial instrument that allows it to be transferred or assigned from one party to another in a manner that the transferee obtains a good title.

Preponderance of the Evidence

Preponderance of the evidence is the standard of proof in most civil trials, which means that the evidence on one side outweighs, or is more convincing than, the evidence on the other side.

Performance

The action or process of carrying out or accomplishing an action, task, or function.