The transfer of intermediate products or services among divisions is usually managed through a transfer-pricing system.

Question

Quizplus · Accepted Answer

Transfer pricing is a system used to determine the value of goods and services that are exchanged between different divisions or subsidiaries within a company. It helps to ensure that the transfer of intermediate products or services is done at a fair market value and not at an artificial price that may benefit one division or subsidiary over the other. Therefore, the statement is true.

The Transfer of Intermediate Products or Services Among Divisions Is