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

question 133

Multiple Choice

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

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

Apply management theories to practical situations and challenges in organizational settings.

Understand the critique and limitations of management by best-sellers.

Recognize the contribution of various thinkers to quality management and process improvement.

Identify management approaches based on the situation and management theories.

---

Definitions:

Anticipated Future Earnings

Projected profits or income that a company expects to earn in future periods, often used in valuations.

Common Stock

A type of equity security that represents ownership in a corporation, giving holders a share in the company's profits and voting rights.

Par Value

A nominal value assigned to a share of stock or a bond by the issuing company, often used in accounting.

Liability Recorded

The process of documenting a company's obligations or debts in its financial records.