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Studies have found that all of the following statements are true except:
Transfer Price
The price at which goods and services are sold between divisions within the same company.
Excess Capacity
The unused production capability of a company, indicating that the company can produce more than is currently being demanded.
Expense Allocation
The process of identifying, aggregating, and assigning costs to cost objects like departments, products, or projects.
Operating Departments
Operating departments are the functional areas within an organization directly involved in producing the company's main goods or services, such as production or sales departments.
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