A Transfer-Pricing Method Leads to Goal Congruence When ________

question 24

Multiple Choice

A transfer-pricing method leads to goal congruence when ________.

• A) there is a price difference in different markets due to market inefficiencies
• B) managers do no act for their own best interest and work for the long-term best interest of the manager's subunit
• C) managers act in their own best interest and the decision is in the long-term best interest of the company
• D) there is a low degree of centralization

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Definitions:

Worksheet

A worksheet is a document or a digital spreadsheet used for organizing, calculating, and analyzing data, especially for tasks involving financial information or planning.

Unpaid Wages

Amounts due to employees for work performed that have not yet been paid by the employer, representing a liability for the company.

Overstatement

The act of reporting financial data more positively than is accurate, leading to a portrayal of a stronger financial position.

Understatement

A representation of financial position or results of operations that is less than what is true, factual, or proper, often leading to a misleading view of a company's financial health.