The Objective of Transfer Pricing Is to Encourage Each Division

question 194

True/False

The objective of transfer pricing is to encourage each division manager to transfer goods and services between divisions if overall company income can be increased by doing so.

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Definitions:

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally and automatically triggers a response without prior learning.

Primary Stimulus

The initial or main source of stimulation that elicits a response in sensory, behavioral, or cognitive processes.

Secondary Stimulus

A stimulus that acquires the capacity to evoke a conditioned response after being paired with a primary stimulus.

Acquisition

The process of learning or obtaining new information, skills, or responses, as in the initial stage of conditioning in psychology.