A Transfer Price Can Be Based on a Market Price

question 124

True/False

A transfer price can be based on a market price for products that has been reduced in the process of bargaining by division managers.

---

Definitions:

Postconventional

A level of moral reasoning in Kohlberg's theory characterized by the individual's ability to think beyond societal norms and consider universal ethical principles.

Belief System

A Belief System is a set of principles or tenets that form the basis of a person's convictions, values, or actions.

Ethical Leadership

A leadership style centered around guiding and influencing others based on universally accepted moral principles and values.

Ethical Followership

The practice of supporting leaders and contributing to organizations in a manner that is consistent with ethical principles.