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All of the following are correct statements about the cost-based transfer price approach except that it can understate the actual contribution to profit by the
All of the following are correct statements about the cost-based transfer price approach except that it can understate the actual contribution to profit by the selling division. provides incentive for the selling division to control costs. can reduce a division manager's control over the division's performance. bases the transfer price on standard cost instead of actual cost.
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