An advantage of using budgeted costs for transfer pricing among divisions is that:
A)it promotes subunit autonomy.
B)it usually provides a basis for optimal decision making.
C)overall corporate profitability is usually higher.
D)the divisions know the transfer price in advance.

Question

Quizplus · Accepted Answer

Knowing the transfer price in advance allows divisions to plan and budget more effectively, reducing uncertainty and facilitating smoother internal transactions.

An Advantage of Using Budgeted Costs for Transfer Pricing Among