The Overall Objective in the Determination of a Transfer Price

question 71

Multiple Choice

The overall objective in the determination of a transfer price is to

• A) maximize the return of the selling division.
• B) minimize the cost to the purchasing division.
• C) minimize the return of the selling division.
• D) maximize the return to the whole company.

---

Definitions:

Data Packets

Small blocks of data transmitted over a network, consisting of control information and user data, enabling efficient and error-checked data transfer.

Networks

Systems consisting of interconnected computers, servers, and other devices that allow for data exchange and sharing of resources.

Peer-to-peer Network

A decentralized network architecture where each participant (peer) shares part of their resources to benefit the network without the need for central coordination.

Specialized Software

Software designed to address specific needs of particular industries, professions, or applications, distinguishing it from general-purpose software.