Which Statement Is True Concerning the Establishment of Transfer Prices

question 53

Multiple Choice

Which statement is true concerning the establishment of transfer prices?

• A)If the selling division is operating at capacity,it should transfer at market price.
• B)If the selling division is operating below capacity,it should transfer at a discount.
• C)if the selling division is operating below capacity,it should transfer at market price.
• D)None of the answers is correct.

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