When a Dispute Arises Over a Transfer Price, Top Managers

question 315

True/False

When a dispute arises over a transfer price, top managers should intervene to keep divisional managers from making a costly mistake, even though the divisions are evaluated as profit centers.

---

Definitions:

Creditor

An individual, company, or institution to whom money is owed by another party, the debtor.

Debtor

A person or entity that owes money to another party.

Electronic Transfer

Electronic transfer involves the movement of funds between accounts using electronic systems, without the need for physical exchange of money.