Transfer Price: This is a price which is charged by one sub-unit of an organization to another sub-unit for supplying a product or service in the same organization. To explain: The one potential limitation of full-cost based transfer prices.

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Chapter 22, Problem 22.11Q

To determine

Transfer Price:

This is a price which is charged by one sub-unit of an organization to another sub-unit for supplying a product or service in the same organization.

To explain: The one potential limitation of full-cost based transfer prices.

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