Multiple Choice
When considering setting the transfer price at the market price of a product similar to the intermediate good that is already available on the market
A) It is appropriate to ignore that the market price includes a margin above marginal cost
B) It is OK if the product on the market includes costly features your downstream division does not use
C) Consider whether the product on the market is inexpensive because its quality is lower than you use
D) If it is similar enough,it is justification for you producing it in-house
Correct Answer:
Verified
Correct Answer:
Verified
Q1: All of the following can cause conflict
Q3: When considering setting the transfer price at
Q4: Which of the following is TRUE?<br>A)Maximizing division
Q5: Straight line pay for performance<br>A)Provides an incentive
Q6: Managers of profit centers earn more when
Q7: A bank divided in different divisions for
Q8: In a firm organized along functional lines,employee
Q9: For managers who know that they have
Q10: Functional divisions<br>A)Make it easier to tie pay
Q11: Ways to "game" the budgeting process include<br>A)delaying