Answer the following statements true (T) or false (F)
1. The primary objective in setting transfer prices is to achieve goal congruence by selecting a price that will maximize the overall company profits.
2. In many cases, the amount of the transfer price does not affect overall company profits.
3. If a market-based transfer price is used, the transfer price is based on the cost of goods sold.
4. A cost-based transfer price considers the cost of producing the goods when determining the price.
1. TRUE
2. TRUE
3. FALSE
4. TRUE
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