Which of the following statements about the establishment of transfer prices for internal sales and purchases between segments is FALSE?
A) In decentralized organizations, transfer pricing policy sometimes leads to dysfunctional decisions.
B) There is seldom a perfect transfer pricing policy.
C) Organizations use a variety of methods to determine transfer prices.
D) In centralized organizations, segment managers set transfer prices.

Question

Quizplus · Accepted Answer

In centralized organizations, transfer prices are typically set by top management rather than segment managers.

Which of the Following Statements About the Establishment of Transfer