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-Eased 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 suburit 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.
___I. Negotiated transfer pricing preserves subunit autonomy.
Correct Answer:
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b. Sometimes
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