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10. (TCO 8) A limitation of transfer prices based on actual cost is that they (Points : 11) charge inefficiencies to the department that is

10. (TCO 8) A limitation of transfer prices based on actual cost is that they (Points : 11) charge inefficiencies to the department that is transferring the goods. can lead to suboptimal decisions for the company as a whole. must be adjusted by some markup. lack clarity and administrative convenience.

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