Question: The principle reason for transfer-pricing systems is to communicate data that will lead to goal- congruent decisions by managers of different business units. When managers

The principle reason for transfer-pricing systems is to communicate data that will lead to goal- congruent decisions by managers of different business units. When managers take actions that conflict with organizational goals, dysfunctional behavior exists. Why does top management some-times accept a division manager’s judgments, even if the division manager appears to behave in a dysfunctional manner?

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