Question: Which statement is correct concerning transfers between divisions in different countries? The total after - tax contribution margin is equal to the transfer price between
Which statement is correct concerning transfers between divisions in different countries?
The total aftertax contribution margin is equal to the transfer price between divisions in different companies.
The total beforetax contribution margin of a company is the same regardless of the transfer price.
Some companies allocate more contribution margin in countries with high tax rates and less to countries with low tax rates.
The aftertax total contribution margin of a company will be the same regardless of in which country a company earns revenue.
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