​When a transfer price increases

A) ​the profits of the division using the intermediate product will rise      
B) the profits of the division using the intermediate product will be unaffected
C) the profits of the division using the intermediate product will fall
D) ​the costs of the division using the intermediate product will fall

Transfer Price

The price charged for goods, services, or intellectual property when these are exchanged between divisions within the same company.

Division Using

Refers to the allocation or utilization of resources or responsibilities among different departments or sectors within an organization.

Intermediate Product

A product that is used as an input in the production of another good rather than being sold directly to consumers.