Generally, a transfer of products between two divisions should take place if it
A)allows one division to benefit from technology developed in another division.
B)results in increased incremental income to the company as a whole.
C)increases awareness within the company of activity in the various divisions.
D)assists the management to evaluate performance of the divisions.

Question

Quizplus · Accepted Answer

The transfer of products between two divisions should result in increased incremental income to the company as a whole. This is because the transfer should benefit the company in terms of cost savings or increased revenues, which ultimately leads to increased profitability for the entire organization. A, C, and D may also be true, but they are not the primary purpose for a transfer of products between two divisions.

Generally, a Transfer of Products Between Two Divisions Should Take