The Objective of Transfer Pricing Is to Encourage Each Division

question 194

True/False

The objective of transfer pricing is to encourage each division manager to transfer goods and services between divisions if overall company income can be increased by doing so.

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Definitions:

Express

Express refers to a mode of communication or transportation that is fast and direct.

Condition

A specific requirement or stipulation that must be met for a contract or agreement to become effective or for certain actions to be taken.

Vehicle

A means of transporting goods or persons, typically on land, such as cars, trucks, or bicycles.

Discharge by Performance

The termination of contractual obligations by fully executing the tasks or duties outlined in the contract.