Which of the Following Describes the Goal That Should Be

question 14

Multiple Choice

Which of the following describes the goal that should be pursued when setting transfer prices?

• A) Maximize profits of the buying division.
• B) Maximize profits of the selling division.
• C) Allow top management to become actively involved when calculating the proper dollar amounts.
• D) Establish incentives for autonomous division managers to make decisions that are in the overall organization's best interests (i.e., goal congruence).
• E) Minimize opportunity costs.

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Definitions:

Case Study

An in-depth examination of an individual or group to explore the causes of underlying principles or phenomena.

Control Group

In experimental research, the group of subjects that does not receive the treatment being tested, used as a benchmark to measure the effect of the treatment.

Independent Variable

An independent variable is the variable in an experiment or study that is manipulated or changed by the researcher to observe its effect on the dependent variable.

Dependent Variable

In an experiment, the variable that is tested and measured, expected to change due to the independent variable.