What Is the Primary Problem with Using Discretionary Transfer Prices

question 19

Multiple Choice

What is the primary problem with using discretionary transfer prices to minimize costs in a decentralized organization?

• A) They don't really minimize tax costs.
• B) The appropriate transfer price to minimize costs cannot be determined by the parent company.
• C) The benefits of decentralization may be lost.
• D) They are extremely difficult to administer.

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Definitions:

Exact Spelling

The accurate arrangement and sequence of letters in a word.

Indexing

The method of organizing data, literature, or information to facilitate easy retrieval, often seen in libraries, databases, and various information systems.

Misplace

is the act of putting something in the wrong place, resulting in temporary loss or forgetting where it is.

Patient Record

A detailed document containing a patient's medical history, treatment plans, and personal health information, maintained by healthcare providers.