The fact that is not a disadvantage of transferring items at cost.
A) the buying segment will not be able to plan its costs
B) cost inefficiencies are passed along to the buying department
C) it cannot be used to evaluate segment performance
D) transferring items at cost can disguise a cost's behavior pattern

Question

Quizplus · Accepted Answer

Transferring items at cost cannot be used to evaluate segment performance because it does not reflect the true cost of the items to the buying segment.

The Fact That Is Not a Disadvantage of Transferring Items