In general, if a potential transfer has no effect on divisional profits:
A) no transfer will take place between the divisions.
B) managers will be indifferent between making the transfer or not.
C) the organization should not intervene to force a transfer.
D) the optimal transfer price is the opportunity cost for the buying division.

Question

Quizplus · Accepted Answer

If a potential transfer has no effect on divisional profits, managers will be indifferent between making the transfer or not, as it does not impact their financial performance.

In General, If a Potential Transfer Has No Effect on Divisional