Transfers Between Divisions in Different Countries $-$ Knowledge Check

Knowledge Check

Which statement is correct concerning transfers between divisions in different countries?

Some companies allocate more contribution margin in countries with high tax rates and less to countries with low tax rates.

The total after$-$tax contribution margin is equal to the transfer price between divisions in different companifer

The total before$-$tax contribution margin of a company is the same regarilless of the transfer price.

The after$-$tax total contribution margin of a congany will be the same regarilless of in which country a compary carns revenue.

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