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Which of the following is not a reason why companies need transfer pricing syste

ID: 2370909 • Letter: W

Question

Which of the following is not a reason why companies need transfer pricing systems?

A)transfer pricing is always profitable for the segments involved and the organization as a whole

B)transfer pricing systems preserve segment autonomy

C)transfer pricing is an attention directing device that highlights good performance and motivates peronnel to maintain efficiency

D) if inefficiency exists somewhere in a corporation that does not employ a transfer pricing system it is much harder to pin down the area or process that is most directly responsible

Explanation / Answer

A)transfer pricing is always profitable for the segments involved and the organization as a whole

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