Which of the following responsibility centers is affected by the use of market-based transfer prices?
A) Cost center.
B) Profit center.
C) Revenue center.
D) Production center.

Name: Which of the following responsibility centers is affected by the use of market-based transfer prices? A) Cost center. B) Profit center. C) Revenue center. D) Production center.
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Question

Quizplus · Accepted Answer

Market-based transfer prices affect profit centers because they impact the revenue and costs, thus affecting the profitability of the center.

Which of the Following Responsibility Centers Is Affected by the Use