Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

All of the following reasons are legitimate potential disadvantages of using a market-based transfer price except Select one: A. substantially high selling expenses can

 

All of the following reasons are legitimate potential disadvantages of using a market-based transfer price except Select one: A. substantially high selling expenses can lead companies to set an artificially high transfer price. B. use of market price leads division managers to act in a manner that is inconsistent with corporate goals. C. market price of intermediate goods and services can be difficult to determine. D. market price can be misleading if it is controlled by one or two highly influential companies.

Step by Step Solution

3.45 Rating (155 Votes )

There are 3 Steps involved in it

Step: 1

ANSWER C Market price of intermediate goods and services can be difficult to determine In a typical ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Management Measuring Monitoring And Motivating Performance

Authors: Leslie G. Eldenburg, Susan K. Wolcott

2nd Edition

978-0-470-7694, 0470769424, 978-0470769423

More Books

Students also viewed these Accounting questions

Question

Summarize the forms and functions of nonverbal communication.

Answered: 1 week ago