Management's Challenge Is to Set Transfer Prices So That Both

Multiple Choice

Management's challenge is to set transfer prices so that both the buyer and seller have goal congruence with respect to the organization's goals.How is this accomplished?

A) With no intervention from top management to set the transfer price for each transaction between divisions.
B) With top management establishing transfer price policies that divisions follow.
C) With division managers not engaging in negotiation to set transfer prices among themselves.
D) All of the answers are correct.