In interstate transactions, transfers can reduce an organization's tax liability when the selling division is in a lower tax jurisdiction than the buying division.

	True
	False

In the United States, more companies use cost-based transfer prices than market-based transfer prices.

	True
	False

Tax avoidance is unethical when inflated transfer prices are used in international transactions to shift profits from a division in one country to a division in another country.

	True
	False

The use of an optimal transfer price eliminates potential conflicts between an organization's interests and the divisional manager's interest.

	True
	False