When making a decision that involves a product transferred from another subunit of the company, the manager of the selling division should choose the alternative that

Question

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As a manager of a subunit of the company, the ultimate goal should be to maximize the profit of the entire company, not just the subunit. Therefore, choosing the alternative that maximizes profit for the company as a whole is the best choice. This also takes into consideration the goods needed from another subunit of the company and the negotiated transfer price, as these factors can affect the overall profit for the company.

When Making a Decision That Involves a Product Transferred from Another