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

question 167

Multiple Choice

A benefit of using a market-based transfer price is that 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)decision making is optimal when the subunits depend on each other.
• D)can be additional costs but the costs are less than the benefits.
• E)economic viability and profitability of each division can be evaluated individually.