​When a transfer price decreases

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

Transfer Price

The price at which goods or services are sold between divisions within the same company.

Division Producing

A specialized unit within a company focused on manufacturing or outputting specific products or services.

Intermediate Product

An intermediate product refers to a good or service that is utilized in the production process of another good or service, rather than being sold directly to consumers.