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Corporate management _____________.) Would not need to be involved in any decisions related to possible internal transfers of goods or services.

Corporate management _____________.

A.) Would not need to be involved in any decisions related to possible internal transfers of goods or services.

B.) Would need to be involved in a decision of whether or not to internally provide or externally purchase the good or service but would not need to be involved in setting the transfer price.

C.) Would need to be involved in setting transfer prices but would not need to be involved in the decision of whether or not to internally provide or externally purchase the good or service.


The selling division's capacity would _________. (Select all that apply)

A.) factor into their decision about their minimum selling price

B.) not factor into their decision about their minimum selling price.

C.) factor into the purchasing division's decision about their maximum purchase price

D.) not factor into purchasing division's decision about their maximum purchase price.


In setting transfer prices, which of the following types of costs would normally not be considered?  

A.) Variable costs

B.) corporate administrative costs

C.) Outside vendor cost

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