In profit centers and investment centers, a _____ is used to measure products fu

Question

In profit centers and investment centers, a _____ is used to measure products furnished to other responsibility centers. Select one: a. cost control b. cost center c. transfer price d. revenue center In profit centers and investment centers, a _____ is used to measure products furnished to other responsibility centers. Select one: a. cost control b. cost center c. transfer price d. revenue center In profit centers and investment centers, a _____ is used to measure products furnished to other responsibility centers. Select one: a. cost control b. cost center c. transfer price d. revenue center

Explanation / Answer

Answer is C. Transfer price.

Explanation:

The transfer pricing policy is used for internal transfer of goods among the various divisions, when the division managers are responsible for profits of the division (i.e. they are served as profit center or investment center).

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