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13. For the following questions (13.18) about transfer pricing, assume the organization is X Co....

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Accounting

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13. For the following questions (13.18) about transfer pricing, assume the organization is X Co. Division S produces a component that can be sold to outside customers at a fair market price or to Division B at a transfer price. Division B uses the component to produce a finished product itsells to outside customers. Division B can also purchase the component from an outside supplier, Co. O at a fair market price. A transfer pricing system should: a. maximize the transfer price c. maintain common and harmonious goals between the divisions and the entire firm d. none of the above b. minimize the transfer price

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