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Consider the following statements regarding transfer prices: The price refers to the amount charged for goods and services exchanged between two divisions. The cost

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Consider the following statements regarding transfer prices: The price refers to the amount charged for goods and services exchanged between two divisions. The cost transfer-pricing method can lead to dysfunctional decision-making behavior by managers. The producing division has excess capacity, the general transfer-pricing rule and the external market price yield the same transfer price. Which of the above statements is (are) true? Olms OL and O Only O Moving to another question will save this response.

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