A Benefit of Using a Market-Based Transfer Price Is The

question 86

Multiple Choice

A benefit of using a market-based transfer price is the:

• A)profits of the transferring division are sacrificed for the overall good of the corporation
• B)profits of the division receiving the products are sacrificed for the overall good of the corporation
• C)economic viability and profitability of each division can be evaluated individually
• D)None of these answers is correct.

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Definitions:

Non-electrolyte

A substance that does not readily ionize when dissolved or melted and is therefore a poor conductor of electricity.

Dissociate

In chemistry, it refers to the process by which molecules, ions, or complexes split into smaller particles or ions, often reversible and influenced by environmental conditions.

Aqueous Solution

A mixture where water acts as the dissolving medium.

LiI

Lithium iodide, a chemical compound made of lithium and iodine, used notably in batteries and pharmaceuticals.