Question: In Chapter 12, we discussed corporate cost allocation and the incentive problems associated with these allocations. How is the problem of corporate cost allocations similar

In Chapter 12, we discussed corporate cost allocation and the incentive problems associated with these allocations. How is the problem of corporate cost allocations similar to the transfer pricing problems studied in this chapter? Is the approach suggested in Chapter 12 as a solution to the corporate cost allocation problem consistent with the optimal transfer pricing approach discussed in this chapter?

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