The Primary Objective in Setting Transfer Prices Is to ________

question 152

Multiple Choice

The primary objective in setting transfer prices is to ________.

• A) maximize profits for the company as a whole
• B) maximize profits for the selling division
• C) minimize the cost to the purchasing division
• D) maximize profits for the purchasing division

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Definitions:

Quotas

Set limits or targets, often referring to the required or expected production output, sales levels, or representation of certain groups.

Cultural Value Dimension

Frameworks or models that describe the dominant patterns of values, beliefs, and behaviors that characterize different cultures.

Economic Development

The process by which a nation improves the economic, political, and social well-being of its people.

Equal Opportunity

Equal opportunity is a principle ensuring that all individuals have the same chances to compete for and obtain jobs, education, and other resources, without discrimination based on irrelevant characteristics.