Question: The biggest problem with cost - based transfer prices is: Question 2 options: The fact that their use may result in sub - optimal decisions

The biggest problem with cost-based transfer prices is:
Question 2 options:
The fact that their use may result in sub-optimal decisions from the standpoint of the organization as a whole.
Too much negotiation is involved in determining the transfer price.
Data unavailability.
They are difficult to put into place.
They may lead to goal congruence within the firm.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!