When Transferred Products Can Be Sold in Perfectly Competitive External

question 37

Multiple Choice

When transferred products can be sold in perfectly competitive external markets, the optimal transfer price is the:

• A) external market price.
• B) marginal revenue of the transferred-to (buying) division.
• C) marginal revenue in the output market.
• D) marginal cost of the transferring (selling) division.

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Definitions:

Authentic Leadership

A leadership style in which the leader is genuine, transparent, and ethical, and encourages open and honest communication with followers.

Transformational

Refers to a style of leadership where leaders inspire and motivate employees to exceed their own self-interests for the good of the organization and to create significant changes.

Path-Goal

A leadership theory that suggests a leader's function is to clear the path towards the achievement of group or organizational goals, thereby increasing employee satisfaction and productivity.

Adaptive

Referring to the ability or tendency to adjust or change in response to different conditions or environments.