Which of the following statements is(are)false? (A)From an organization's viewpoint,transfer prices have no effect on total profits assuming the transfer occurs between the two responsibility centers.(B)A transfer price is the value assigned to the transfer of goods or services between divisions within the same organization.
A) Only A is false.
B) Only B is false.
C) Both A and B are false.
D) Neither A nor B is false.

Question

Quizplus · Accepted Answer

Transfer prices do not affect the total profits of an organization as they are internal transactions. A transfer price is indeed the value assigned to internal transfers, so both statements are true.

Which of the Following Statements Is(are)false? (A)From an Organization's Viewpoint,transfer