Question: true or false for each: Capacity must be considered when analyzing the merits of a special order. The method of transfer pricing effects the profitability

true or false for each:

Capacity must be considered when analyzing the merits of a special order.

The method of transfer pricing effects the profitability of the company.

The biggest problem with cost-based transfer prices is too much negotiation is involved.

The Theory of Constraints emphasizes developing competitive constraints.

The greatest advantage of using a market transfer price is it is generally the most practical approach of determining transfer prices when conflict exists between the two divisions.

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