Part V- What is transfer pricing? {LEN} 42. What is a transfer price? 43. To maximize division profits, the selling division will want the price to be while the buying division wants the price to be 44. Which price, if it exists, is often viewed as the fairest transfer price? 45. When the transfer price is negotiated, the lowest it will be is while the highest it will be is 46. If no outside market price exists, will be the basis of the transfer price. What is the disadvantage of using this basis? 4?. What two factors may inuence the transfer price if the selling and buying divisions operate in different parts of the globe? Part 131- How do managers use llbll! budgets to evaluate performance? (L0 5] 48. What is a exible budget? 49. The difference between actual revenues and expenses and the master budget is known as the . Why is this really an "applesnto-oranges\" comparison