All of the following criteria may be used to choose a transfer-pricing method EXCEPT
A)promotion of quality products.
B)promotion of a sustained high level of management effort.
C)promotion of a high level of subunit autonomy.
D)promotion of goal congruence.
E)help top management evaluate subunit performance.

Question

Quizplus · Accepted Answer

Promotion of quality products is not a relevant criterion for choosing a transfer-pricing method. The other options (B, C, D, and E) are all valid criteria for choosing a transfer-pricing method.

All of the Following Criteria May Be Used to Choose