Indicate whether each of the following statements about transfer pricing is true or false.
A cost-based transfer price has the advantage of promoting efficiency and fairness.______
A market-based transfer price may be adjusted to take into account cost savings that occur as a result of sales being made within the company.______
A decentralized company should adopt a policy of requiring divisions in the company to make sales to other divisions when such sales will benefit the company as a whole.______
The level of capacity at which the selling division is operating should not affect the level of the transfer price for a sale to another division in the same company.______
Companies with operations in two or more countries sometimes try to set transfer prices at a level that will reduce their overall income tax bill.______

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The Answer of Indicate whether each of the following statements about transfer pricing is true or false.
A cost-based transfer price has the advantage of promoting efficiency and fairness.______
A market-based transfer price may be adjusted to take into account cost savings that occur as a result of sales being made within the company.______
A decentralized company should adopt a policy of requiring divisions in the company to make sales to other divisions when such sales will benefit the company as a whole.______
The level of capacity at which the selling division is operating should not affect the level of the transfer price for a sale to another division in the same company.______
Companies with operations in two or more countries sometimes try to set transfer prices at a level that will reduce their overall income tax bill.______

Indicate Whether Each of the Following Statements About Transfer Pricing