Which Transfer-Pricing Method Is Useful for Evaluating Subunit Performance,but Transfer

question 44

Multiple Choice

Which transfer-pricing method is useful for evaluating subunit performance,but transfer prices are affected by bargaining strengths of the buying and selling divisions?

• A)Cost-based.
• B)Negotiated.
• C)Market-based.
• D)Minimum-based.
• E)Maximum-based.

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Definitions:

Filtering

The process of modifying, withholding, or manipulating information as it is transmitted through channels or hierarchies within an organization.

Feedback-seeking

The process of actively requesting information about one's performance or behavior.

Two-way Communications

A process of communication where information flows back and forth between the sender and receiver, allowing for feedback and interaction.

One-way Communications

A process where information flows from the sender to the receiver without expecting or allowing any response or feedback.