For Each of the Following Statements Regarding the Satisfaction of Transfer

question 147

Short Answer

For each of the following statements regarding the satisfaction of transfer pricing criteria,identify whether you would expect the transfer pricing method to meet the criteria.Provide a yes,no,or sometimes for each situation.
___a. Market-Based transfer pricing achieves goal congruence.
___b. Cost-Based transfer pricing achieves goal congruence.
___c. Negotiated transfer pricing achieves goal congruence.
___d. Market-Eased transfer pricing motivates management effort.
___e. Cost-Based transfer pricing motivates management effort.
___f. Negotiated transfer pricing motivates management effort.
___g. Market-Based transfer pricing is useful for evaluating subunit performance.
___h. Cost-Based transfer pricing is useful for evaluating suburit performance.
___i. Negotiated transfer pricing is useful for evaluating subunit performance.
___j. Market-Based transfer pricing preserves subunit autonomy.
___k. Cost-Based transfer pricing preserves subunit autonomy.
___I. Negotiated transfer pricing preserves subunit autonomy.

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Definitions:

Manufacturer's Warranty

A promise by a manufacturer to repair or replace defective products within a certain period of time after purchase.

Microwave Oven

An electric oven that uses microwaves to heat or cook food by causing water molecules in the food to vibrate and produce heat.

Repair

The action of fixing or restoring something that is broken or damaged.

Possession

The state of having, owning, or controlling something, legally or factually.