Economics · Cost Accounting and Transfer Pricing
Which of the following statements about transfer pricing is correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Cost-based transfer prices encourage the transferring division to control costs
- 2A transfer price should never be set below market price
- 3Market-based transfer prices always maximise overall company profits
- 4The basis used to calculate transfer prices impacts behaviour and profits✓
Correct answer
The basis used to calculate transfer prices impacts behaviour and profits
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