What is a major problem facing company decision makers when setting transfer prices?
A) how to determine the product-service attributes of the transfer
B) when to complete the transfer
C) how to assign the controllable costs to profit centres
D) what price to actually charge the receiving profit centre

Question

Quizplus · Accepted Answer

The major problem facing company decision makers when setting transfer prices is determining what price to actually charge the receiving profit center. This involves finding a balance between ensuring the selling division is fairly compensated and the buying division is not overcharged, impacting overall company profitability and divisional performance.

What Is a Major Problem Facing Company Decision Makers When