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The cost-plus approach is the best approach for establishing transfer prices for all companies. O True False When using the net book value to calculate
The cost-plus approach is the best approach for establishing transfer prices for all companies. O True False When using the net book value to calculate return on investment (ROI), division managers controlling newer assets with little accumulated depreciation have an advantage over division managers controlling older assets with more accumulated depreciation True False Only information from the income statement is needed to make adjustments when preparing the operating activities section of the statement of cash flows using the indirect method. True O False The percent cost of capital is typically the company's percentage cost to obtain investment funds. True False Although economic value added (EVA) is similar to residual income, adjustments are made to the financial information to better reflect the economic results of the division. True False
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