If a Division Is Set Up as an Autonomous Profit

question 169

Multiple Choice

If a division is set up as an autonomous profit center,then goods should not be transferred

• A)in at a cost-based transfer price.
• B)out at a cost-based transfer price.
• C)in or out at cost-based transfer price.
• D)to other divisions in the same company.

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Definitions:

Path-Goal Theory

A leadership theory that suggests leaders adjust their styles depending on the situation and characteristics of followers to guide them in achieving their goals.

Subordinate Characteristics

The attributes or traits of individuals that report to a supervisor or manager in a workplace hierarchy.

Task Demands

The requirements or expectations associated with a specific job or task, including the effort and skills needed.

Directive Leader

A leadership style characterized by providing clear, specific commands and expecting compliance from subordinates.