The principle reason for transfer-pricing systems is to communicate data that will lead to goal- congruent decisions

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The principle reason for transfer-pricing systems is to communicate data that will lead to goal- congruent decisions by managers of different business units. When managers take actions that conflict with organizational goals, dysfunctional behavior exists. Why does top management some-times accept a division manager’s judgments, even if the division manager appears to behave in a dysfunctional manner?

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Introduction to Management Accounting

ISBN: 978-0133058789

16th edition

Authors: Charles Horngren, Gary Sundem, Jeff Schatzberg, Dave Burgsta

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