Question: Your local fast food chain with two dozen stores uses

Your local fast food chain with two dozen stores uses the company's internal corporate marketing department to produce signage, print ads, instore displays, and so forth. When placing an order, store managers are assessed a chargeback (transfer price) that reduces store profitability but increases marketing department profitability.
Lately, the store managers have been ordering more and more marketing services; the marketing department is swamped, and it cannot afford to hire more staff. What does this indicate about the chargeback rates?




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  • CreatedFebruary 13, 2014
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