Question: 2. Individual Problems 22-2 Suppose that corporate headquarters are tasked with setting transfer prices in a company. It may be a bad idea to give

2. Individual Problems 22-2

Suppose that corporate headquarters are tasked with setting transfer prices in a company.

It may be a bad idea to give corporate headquarters the power to set transfer prices, since it may incentivize profit center managers to______ (accurately portray/ misrepresent) the costs of the resource being transferred.

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