Essay
For each of the following statements regarding the satisfaction of transfer pricing criteria,identify whether you would expect the transfer pricing method to meet the criteria.Provide a 'yes','no' or 'sometimes' for each situation.
a.Market-based transfer pricing achieves goal congruence.
b.Cost-based transfer pricing achieves goal congruence.
c.Negotiated transfer pricing achieves goal congruence.
d.Market-based transfer pricing motivates management effort.
e.Cost-based transfer pricing motivates management effort.
f.Negotiated transfer pricing motivates management effort.
g.Market-based transfer pricing is useful for evaluating subunit performance.
h.Cost-based transfer pricing is useful for evaluating subunit performance.
i.Negotiated transfer pricing is useful for evaluating subunit performance.
j.Market-based transfer pricing preserves subunit autonomy.
k.Cost-based transfer pricing preserves subunit autonomy.
l.Negotiated transfer pricing preserves subunit autonomy.
Correct Answer:

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a.Yes
b.Sometimes
c....View Answer
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Correct Answer:
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b.Sometimes
c....
View Answer
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