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:

Life Cycle

The series of stages a product goes through from introduction to growth, maturity, and decline in the market.

Marketing Objectives

Goals set by a business when promoting its products or services to potential consumers that should be achieved within a given timeframe.

Marketer

An individual or organization that seeks to understand the needs of consumers and engages in practices designed to influence their purchasing decisions and experiences positively.

Effective

The degree to which something is successful in producing a desired or intended result.