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:
Verified
b.Sometimes
c....
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q99: Answer the following questions using the
Q100: Briefly explain each of the three methods
Q101: South Sydney Consultants has two divisions: Accountancy
Q102: The Airbags Division of Shepparton Motor
Q103: The Micro Division of Woomera Wi-Fi produces
Q105: Glenelg Sheet Metal Company has two divisions.The
Q107: Flinders Street Consultancy has two divisions: Computer
Q108: Bedtime Bedding Company manufactures pillows.The Cover
Q109: WestOZ Aluminium Company has two divisions.The Refining
Q141: What is the role of unused capacity
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents