Question: Transfer prices cannot be used for decision making, product costing, or performance evaluation. Transfer pricing is used in decision making, product costing, and performance evaluation.

Transfer prices cannot be used for decision making, product costing, or performance evaluation. Transfer pricing is used in decision making, product costing, and performance evaluation.
True/False

Step by Step Solution

★★★★★

3.44 Rating (154 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

TRUE Transfer Price is the value that connected gatherings charge to one another In basic words we can say it is the cost at which various offices in an organization move products to one another Move ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Business Communication Questions!

On the basis of an extensive survey, the California Department of Education reported an r of .32 for the relationship between the amount of time spent watching TV and the achievement test scores of...

Tightly packed DNA cannot be used for protein synthesis. Why has evolution favored the histones and other proteins that help DNA fold into compact chromosomes?

Transfer pricing can be used to shift profits to jurisdictions with low or no tax to reduce the taxes payable for multinational companies. If such profit shifting is legal, is it ethical? Was Apple...

The presentations, of work-in-progress on the major assignments, will occur during the tutorials in Weeks 8 and 9. The presentations are worth 5% of the total assignment. The presentations will be on...

America Connect offers Internet, phone, and television services to customers in Wyoming. (Click the icon to view additional information.) The following information is available for the forthcoming...

1. TheTrusted Insurance Company insures homeowners in three regions of the United States: Eastern, Midwest, and South. In the past year, several hurricanes hit the Southern region of the United...

Hi, This subject is financial accounting, here is a short essay type question, approximately 5 paragraphs. ''Drawing on private interest theory, what powers do you believe the Australian Accounting...

Imagine being an advisor to Hank Harris. What would you suggest should be Seller Labs' competitive strategy going forward? (Please use the case study below to answer the question in two-three...

duction The Case Study for PROJ587 will place the student in the role of a senior manager in charge of one of your company's Strategic Business Units (SBU). Your first task in this new position is to...

Quiz 9 MULTIPLE-CHOICE QUESTIONS 1.All of the following are examples of distributive policies except a.loan guarantees to the Chrysler corporation. b.the graduated income tax. c.airline subsidies....

Aldin Aster, president of Teldar Tech Inc., was reviewing the product profitability reports with the controller, Francie Newburn. The following conversation took place: Aldin: Ive been reviewing the...

Xeriscape Nurseries, Inc., has four divisions. The corporations controller has been asked to prepare a cash budget for the Northern Division for the first quarter. Projected data supporting this...

Find the average value of f over the given rectangle. f ( x , y ) = 2 x 2 y , R has vertices ( 1 , 0 ) , ( 1 , 3 ) , ( 1 , 3 ) , ( 1 , 0 ) . fave = 8 3

Do animals have interests? Are these interest worth consideration? Support your answer, drawing on the discussion of interest in the text?

Consider a small town that is served by two grocery stores, White and Gray. Each store must decide whether it will remain open on Sundays or whether it will close on that day. If both stores decide...

Consider the production cost information for Santiagos Salsa in Problem 1-1. The Company is currently producing and selling 325,000 jars of salsa annually. The jars sell for $5.00 each. The company...

Consider the production cost information for Santiago's Salsa in Problem 1-1. The company is currently producing and selling 325,000 jars of sales annually. The jars sell for $5.00 each. The company...

Why would Chinese steel companies be willing to sell their product at a loss? Though it has created a negative response from the U.S. Commerce Department, discuss the possible reasons that this...

In a certain country the heights of adult men are normally distributed with a mean of 68.1 68.1 inches and a standard deviation of 2.3 2.3 inches. Thecountry's military requires that men have heights...

Which statement or combination of statements is the most accurate regarding transfer pricing? Multiple Choice A . Income taxes and import duties are an important consideration when setting a transfer...

Identify which of the following statements about transfer prices is true: A. Transfer prices are a measure of sales volume B. Transfer prices are often used as a key performance indicator on a...

Briefly describe the conditions that should be met for market-based transfer pricing to lead to optimal decision making among subunits of a large organization. Notice that, when supply outstrips...

7. If Santa Fe would prefer to negotiate a transfer price between the divisions, what range of transfer prices would be used? a. $12- 516 b. $12 - $17 C. $12 -518 d. $16-518

Company GLM produces a product that consists of two parts. The first part is produced by a subsidiary in country A at $5 per unit. The second part is being produced by another subsidiary in country B...