Question

Select all that apply Transfer prices: (Check all that apply.) Multiple select question. are not used in investment centers. are prices charged to outside customers. are transfers within the same company. have a direct impact on division profits. have a direct impact on the company's overall profits.

Answer 1

Answer:

B. are transfers within the same company.

C. have a direct impact on division profits.

Explanation:

Transfer prices can be defined as the amount of money (prices) that is being charged by a division in a business firm for the goods and services provided to another division within the same business firm. Thus, the output of the selling division automatically becomes the input of the buying or receiving division.

The characteristics of transfer prices includes;

I. Are transfers within the same company.

II. Have a direct impact on division profits.