When a product is transferred at market price, the transfer will optimize both divisional and company-wide profits.

Name: When a product is transferred at market price, the transfer will optimize both divisional and company-wide profits.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

If there is a competitive outside market for the transferred product, then the best transfer price is the market price.In such a case, divisional managers' actions will simultaneously optimize divisional profits and firmwide profits.

When a Product Is Transferred at Market Price, the Transfer