In companies with segment autonomy,who determines the transfer price for internal sales and purchases of products?
A) all segment managers
B) segment mangers involved in transfer
C) upper management
D) outside suppliers

Question

Quizplus · Accepted Answer

In companies with segment autonomy, the segment managers involved in the transfer determine the transfer price for internal sales and purchases of products. This helps maintain autonomy and flexibility within each segment while also ensuring that transfers are made at a fair price. Upper management may provide guidance or oversight, but the transfer price is ultimately determined by the segment managers involved. Outside suppliers are not involved in internal transfers.

In Companies with Segment Autonomy,who Determines the Transfer Price for Internal