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.

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Definitions:

Formal Research

Systematic investigation or study into material and sources to establish facts and reach new conclusions in an official, structured manner.

Reliability

The quality or state of being reliable, dependable, or able to be trusted to do or perform as expected.

Qualitative Researchers

Individuals specializing in research methodologies that focus on understanding phenomena through observation and interpretation of non-numerical data.

Numeric Data

Information represented in numbers, often used for analysis and to support arguments or insights.