The difference between transfer prices and bureaucratic costs is that transfer prices are associated with in-house cost increases and bureaucratic costs are not part of a company's cost structure.

Question

Quizplus · Accepted Answer

The statement is incorrect. Transfer prices refer to the prices charged for goods or services transferred between different units or divisions within the same company. Bureaucratic costs, on the other hand, refer to the costs associated with complying with regulations, policies, and procedures in a business environment, and are part of a company's cost structure.

The Difference Between Transfer Prices and Bureaucratic Costs Is That