question 15

global giant a multinational corporation has a producing subsidiary in a law tax rate country and a marketing subsidiary in a high tax country if global giant wants to minimize its worldwide tax liability we would expect global giant to

1- stop marketing in the high tax rate country

2- establish a high transfer price when the producing unit sells to the marketing unit

3- be indifferent as to its transfer pricing policy

4-stop producing in the low tax rate country

5-establish a low transfer price when the producing unit sells to the marketing unit

question 11

the costs are as opposed to benefits of decentralization include all of the following except:

1-the costs managers attention on the subunit rather than the company as a whole

2-duplication of output

3-management development and learning

4-increased costs of information gathering

5-suboptimal decision making

question 6

cash outflows that are directly associated with the production and transfer of the products and services are called :

1-additional costs

2-variable costs

3-opportunity costs

4-transfer costs

5-outlay costs