Which of the following describes the goal that should be pursued when setting transfer prices? Maximize profits
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Question:
Which of the following describes the goal that should be pursued when setting transfer prices?
Maximize profits of the buying division.
Maximize profits of the selling division.
Allow top management to become actively involved when calculating the proper dollar amounts.
Establish incentives for autonomous division managers to make decisions that are in the overall organization's best interests(i.e., goal congruence).
Minimize opportunity costs.
Related Book For
Managerial Economics A Problem Solving Approach
ISBN: 978-1133951483
3rd edition
Authors: Luke M. Froeb, Brian T. McCann, Mikhael Shor, Michael R. War
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