The Primary Objective in Setting Transfer Prices Is to ________

question 213

Multiple Choice

The primary objective in setting transfer prices is to ________.

• A) establish a system that determines the best transfer prices for the company as a whole
• B) evaluate the managers of the responsibility centers involved
• C) achieve goal congruence by selecting a price that will maximize overall company profits
• D) make it easy for managers to select prices that maximize division profits

---

Definitions:

Depressive Disorder

A category of mood disorders characterized by persistent feelings of sadness, emptiness, or hopelessness.

Untroubled Marriages

Marriages that experience minimal conflict and are characterized by mutual satisfaction and understanding between partners.

Artifact Theory

A concept that suggests discrepancies in research outcomes can be due to artificial experimental conditions rather than the variables being studied.

Life Stress Theory

A theory suggesting that significant life stressors can trigger mental health issues such as depression and anxiety.