Transfer Prices Should Be Judged by Whether They Promote

question 79

Multiple Choice

Transfer prices should be judged by whether they promote:

• A)goal congruence.
• B)the balanced scorecard method.
• C)a high level of subunit autonomy in decision making.
• D)Both A and C are correct.

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Definitions:

Core Value

Fundamental beliefs or principles that guide an organization's actions and decision-making.

IBM

International Business Machines Corporation, a global technology company known for its computer hardware, software, and IT services.

Planning Gap

The difference between future desired performance and the projection of future performance, if current operations continue, often leading to the development of strategies to bridge the gap.

Sales Revenue Goal

A set financial target for the amount of income generated from the sale of products or services within a specific time frame.