In Comparing the Three Basic Approaches to Transfer Pricing, Which

question 58

Multiple Choice

In comparing the three basic approaches to transfer pricing, which of the following statements would be true?

• A) A cost-based approach preserves subunit autonomy while negotiated transfer prices do not.
• B) Market-based transfer pricing motivates managers but negotiated prices do not.
• C) Cost-based transfer pricing systems are more difficult to implement and often make more time to implement than negotiated transfer pricing.
• D) Market-based transfer pricing achieves goal congruence when markets are competitive while cost-based can achieve goal congruence, but not always.

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A style of leadership that emphasizes genuineness and integrity, where leaders are true to themselves and genuine in their interactions with others.

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