"Environmental Awareness" Training Mega Manufacturing's Corporate Headquarters Requires Periodic Classes in the Green
Essay
"Environmental Awareness" Training
Mega Manufacturing's corporate headquarters requires periodic classes in the green policies that it embraces.The Human Resource Department conducts the relevant classes and is run as a profit center with each plant manager paying a transfer price per employee taking the classes.Recently,some of the plant managers have been hiring outside firms to conduct these classes.HR has complained to corporate that they will have to lay off staff if this continues but the plant managers reply that the outside firms are much cheaper.Why might corporate headquarters want to ban classes run by external firms anyway?
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The transfer price could be too high.The...View Answer
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