In Setting a Transfer Price, Which of the Following Should

question 3

Multiple Choice

In setting a transfer price, which of the following should not be considered?

• A)Fixed production costs of the buying division.
• B)Production capacity of the selling division.
• C)Product demand from outside customers.
• D)Costs eliminated by internal transfers.

---

Definitions:

Relationship Quality

Describes the depth and satisfaction of connections between individuals, encompassing factors like trust, communication, and mutual respect.

Trust

The confidence or belief in the reliability, truth, ability, or strength of someone or something.

Leader-member Relationship

The dynamic and interaction between a leader and their followers, which can significantly affect performance, motivation, and job satisfaction.

Conscientiousness

A personality trait characterized by diligence, carefulness, and the desire to perform a task well.