Which of the Following Transfer-Pricing Methods Always Achieves Goal Congruence

question 33

Multiple Choice

Which of the following transfer-pricing methods always achieves goal congruence?

• A)full-cost plus a standard profit margin
• B)a negotiated transfer price
• C)a market-based transfer price
• D)a cost-based transfer price

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Definitions:

Evolutionary Logic

The application of principles of evolution, such as natural selection and adaptation, to understand patterns and processes in biology and behavior.

Human Behavior

Refers to the range of actions and mannerisms exhibited by humans in conjunction with their internal and external stimuli.

Jealousy

An emotion experienced when a person perceives a threat to a valued relationship from a third party.

Sexual Loyalty

Refers to the fidelity and exclusivity in romantic or sexual relationships, upholding commitments and refraining from extramarital or extrarelational affairs.