All of the Following Are Correct Statements About the Market-Based

question 131

Multiple Choice

All of the following are correct statements about the market-based approach except that it

• A) assumes that the transfer price should be based on the most objective inputs possible.
• B) provides a fairer allocation of the company's contribution margin to each division.
• C) produces a higher company contribution margin than the cost-based approach.
• D) ensures that each division manager is properly motivated and rewarded.

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Definitions:

Service Performance Behaviours

Actions undertaken by employees in customer-oriented service roles that contribute to the delivery and quality of service.

Servant Leadership

is a leadership philosophy that emphasizes the importance of serving others and prioritizing the needs of employees and the community over personal gain or power.

Leader Behaviour

Actions and conduct by a leader that influence the motivation, environment, and performance of a team.

Ethical Lapses

Instances of poor judgment or failure to follow ethical guidelines, leading to actions that are morally questionable or wrong.