The transfer price between subsidiaries that maximizes profit for the parent company A. is the price that minimizes the purchasing subsidiary's marginal cost. B. is the marginal cost of the producing subsidiary. C. cannot be determined in the absence of nonminusproduction cost considerations such as taxes. D. is the monopoly price of the producing subsidiary.
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Home » Business » The transfer price between subsidiaries that maximizes profit for the parent company A. is the price that minimizes the purchasing subsidiary's marginal cost. B. is the marginal cost of the producing subsidiary. C.