If the distress price is used as the transfer price, ________.
A) the selling division will show a loss because the distress price will not exceed the full cost of the division
B) the buying division will show a loss because the distress price will not exceed the full cost of the division
C) the selling division will show a loss because the distress price will exceed the full cost of the division
D) the buying division will show a loss because the distress price will exceed the full cost of the division
Correct Answer:
Verified
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