A transfer-pricing method leads to goal congruence when managers:
A)always act in their own best interest
B)act in their own best interest and the decision is in the long-term best interest of the manager's subunit
C)act in their own best interest and the decision is in the long-term best interest of the company
D)act in their own best interest and the decision is in the short-term best interest of the company

Question

Quizplus · Accepted Answer

Goal congruence is achieved when managers' actions align with the overall objectives of the company. This occurs when managers act in their own best interest and the decision also benefits the long-term interests of the company.

A Transfer-Pricing Method Leads to Goal Congruence When Managers