Which of the following responsibility centers is affected by the use of market-based transfer prices?
A)cost center.
B)profit center.
C)revenue center.
D)production center.

Question

Quizplus · Accepted Answer

Market-based transfer prices are used to determine the price at which goods or services are transferred between profit centers within an organization. Therefore, the use of market-based transfer prices would only affect profit centers since it affects their profitability and performance. Cost centers, revenue centers, and production centers do not typically use transfer prices.

Which of the Following Responsibility Centers Is Affected by the Use