From an organization's viewpoint,transfer prices have no effect on total profits assuming the transfer occurs between the two responsibility centers.

Name: From an organization's viewpoint,transfer prices have no effect on total profits assuming the transfer occurs between the two responsibility centers.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Transfer prices are internal and do not affect the overall profit of the organization, as they are simply a method of allocating revenue and costs between different parts of the same organization.

From an Organization's Viewpoint,transfer Prices Have No Effect on Total