What Should Be the Objective(s)of a Firm's Transfer Pricing Policy

question 53

Multiple Choice

What should be the objective(s) of a firm's transfer pricing policy?

• A)Ensure a secure source of inputs at the best price possible.
• B)Promote goal congruence, while maintaining divisional autonomy so that accurate performance evaluation can be made.
• C)Develop a cooperative relationship between divisions, while maintaining enough competitiveness to ensure the survival of the firm.
• D)Develop a pricing system that facilitates good record keeping that is acceptable under GAAP.

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Definitions:

Carrier Molecules

Molecules that facilitate the transport of substances across a cell membrane, including ions, sugars, and small molecules, by undergoing a change in shape.

Active Transport

The movement of a substance across a cell membrane from an area of low concentration to an area of high concentration.

Passive Mechanisms

Processes that occur without the input of energy, such as osmosis or diffusion, often in biological contexts.

Nucleic Acids

Biological molecules essential for life, including DNA and RNA, that carry genetic information in cells.