Can the Performance Evaluation Measures (For Autonomous Subunit Managers)create Goal

question 88

Essay

Can the performance evaluation measures (for autonomous subunit managers)create goal congruence problems in transfer pricing situations? Explain.

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Definitions:

Substitutes Available

Other products or services that can be used in place of a particular good or service.

Inelastic

A demand or supply that is not significantly altered by changes in price.

Demand

The amount of a product or service buyers are prepared and can afford to buy at different price levels within a given timeframe.

Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, expressed as a percentage change.