Multiple Select QuestionSelect all that applyTransfer prices: (Check all that apply.)Multiple select question.are not used in investment centers.are prices charged to outside customers.are transfers within the same company.have a direct impact on the company's overall profits.have a direct impact on division income.
Question
Multiple Select QuestionSelect all that applyTransfer prices: (Check all that apply.)Multiple select question.are not used in investment centers.are prices charged to outside customers.are transfers within the same company.have a direct impact on the company's overall profits.have a direct impact on division income.
Solution
The correct answers are:
- are transfers within the same company.
- have a direct impact on the company's overall profits.
- have a direct impact on division income.
Explanation:
Transfer prices are the costs assigned to goods and services that are traded internally within a company. They are used to measure the performance of different segments of the company and can have a direct impact on the company's overall profits and division income. They are not necessarily the prices charged to outside customers.
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