Which of the following statements about the general transfer pricing rule is false? ...
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Accounting
Which of the following statements about the general transfer pricing rule is false?
When the supplying division has excess capacity, the general rule and the external market price will not yield the same transfer price.
When the supplying division has excess capacity, the transfer decision should be based on the outlay cost.
When the supplying division has no excess capacity, the general rule and the external market price will yield the same transfer price.
When the supplying division has no excess capacity, the opportunity cost is the foregone contribution from the lost sale.
When the supplying division has no excess capacity, the opportunity cost is zero.
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