Which of the Following Statements Is(are)false? (A)From an Organization's Viewpoint,transfer

question 26

Multiple Choice

Which of the following statements is(are) false? (A) From an organization's viewpoint,transfer prices have no effect on total profits assuming the transfer occurs between the two responsibility centers.(B) A transfer price is the value assigned to the transfer of goods or services between divisions within the same organization.

• A) Only A is false.
• B) Only B is false.
• C) Both A and B are false.
• D) Neither A nor B is false.

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Definitions:

Induced Compliance

A special case of cognitive dissonance: inconsistency is experienced when a person is persuaded to behave in a way that is contrary to an attitude.

Cognitive Dissonance

The psychological discomfort experienced by an individual who holds two or more contradictory beliefs, ideas, or values at the same time.

Inoculation

A way of making people resistant to persuasion. By providing them with a diluted counter-argument, they can build up effective refutations to a later, stronger argument.

Reactance

Brehm’s theory that people try to protect their freedom to act. When they perceive that this freedom has been curtailed, they will act to regain it.