The fact that _____ is not a disadvantage of transferring items at cost.
A)transferring items at cost can disguise a cost's behavior pattern
B)the buying segment will not be able to plan its costs
C)cost inefficiencies are passed along to the buying department
D)it cannot be used to evaluate segment performance

Question

Quizplus · Accepted Answer

Transferring items at cost may not allow for a clear evaluation of segment performance, but this is not necessarily a disadvantage in and of itself. It may just require additional analysis and consideration of other factors. The other options listed are all potential disadvantages of transferring items at cost.

The Fact That _____ Is Not a Disadvantage of Transferring