When a buying division purchases from outside supplier because the minimum transfer price is higher than their maximum transfer price, there is suboptimization, as the entire company could have benefited if the internal transfer occurs. True or False
When a buying division purchases from outside supplier because the minimum transfer price is higher than their maximum transfer price, there is suboptimization, as the entire company could have benefited if the internal transfer occurs. True or False
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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When a buying division purchases from outside supplier because the minimum transfer price is higher than their maximum transfer price, there is suboptimization, as the entire company could have benefited if the internal transfer occurs.
True or False
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