Chapter 14, Problem 14.1C

To determine

Concept Introduction:

Transfer Price:

Transfer Price is a price at which one division of a company transfers its goods to another division of the same company.

Morals are judgments, standards, and rules of good conduct in the society. They guide people toward permissible behavior with regard to basic values. Business ethics are business policies and practices which are made to conduct a business in an ethical and moral way. Ethics can be found it laws but some are developed with the situations and moral and acceptable social behaviors.

To Indicate:

If it is ethical to force the division for a transfer price