Which of the following is management's challenge when setting transfer prices?
A)Ensuring the buyer has goal congruence with respect to the organization's goals.
B)Ensuring the seller has goal congruence with respect to the organization's goals.
C)Ensuring either the buyer or the seller,but not both,has goal congruence with respect to the organization's goals.
D)Ensuring both the buyer and seller have goal congruence with respect to the organization's goals.

Question

Quizplus · Accepted Answer

Management's challenge when setting transfer prices is to ensure that both the buyer and seller have goal congruence with respect to the organization's goals. The transfer price should be set in a way that motivates both parties to work towards the overall success of the organization. By ensuring both parties have goal congruence, the organization can achieve optimal performance and efficiency.

Which of the Following Is Management's Challenge When Setting Transfer