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:

Suprachiasmatic Nucleus

A part of the brain located in the hypothalamus that regulates circadian rhythms.

Circadian Rhythm

A natural, internal process that regulates the sleep-wake cycle and repeats roughly every 24 hours, affecting physical, mental, and behavioral changes in living organisms.

Pineal Gland

A small, pine-cone-shaped endocrine gland in the brain that produces and secretes the hormone melatonin, which regulates sleep patterns.

Hypothalamus

A region of the brain below the thalamus that coordinates both the autonomic nervous system and the activity of the pituitary, controlling body temperature, thirst, hunger, and other homeostatic systems.