In many cases,the amount of the transfer price does not affect overall company profits.

Question

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The transfer price is the price at which goods or services are transferred between different divisions or entities of the same company. The transfer price does not affect the overall company profits since it is an internal transaction and does not involve any external sales or expenses. However, the transfer price can affect the performance evaluation and decision-making process of the different divisions or entities within the company.

In Many Cases,the Amount of the Transfer Price Does Not