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