1. Having managers engage in suboptimization acts that benefit themselves to the detriment of the overall firm...
Question:
1. Having managers engage in suboptimization acts that benefit themselves to the detriment of the overall firm
2. Creating responsibility reports that “bury” important details needed to accurately evaluate managerial performance in summary data
3. Allocating support department costs using an “ability-to-bear” criterion that results in profit-detrimental actions
4. Improperly estimating the benefits provided between departments to shift support department costs inappropriately
5. Establishing a transfer pricing system that does not allow managers who will be judged on profitability performance to buy or sell externally
6. Engaging in transfer pricing techniques that improperly shift costs to low- or no-tax locations
Step by Step Answer:
Cost Accounting Foundations and Evolutions
ISBN: 978-1111626822
8th Edition
Authors: Michael R. Kinney, Cecily A. Raiborn