How does the choice of a transfer price affect the operating profits of both segments involved in

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How does the choice of a transfer price affect the operating profits of both segments involved in an intra-company transfer? Why is the choice of a transfer price important if the total profits of the firm are unaffected by this choice?

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Fundamentals of Cost Accounting

ISBN: 978-0077398194

3rd Edition

Authors: William Lanen, Shannon Anderson, Michael Maher

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Question Posted: Apr 26, 2012 04:18 AM

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How does the choice of a transfer price affect the operating profits of both segments involved in

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The transfer price becomes revenue for the selling segment and a cost to th...View the full answer

Fundamentals of Cost Accounting

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