Question Details

Dual pricing reduces the goal-congruence problem associated 



TRUE/FALSE

1.	The costs used in cost-based transfer prices can only be actual costs.

	
2.	The choice of a transfer-pricing method has minimal effect on the allocation of company-wide operating income among divisions.

3.	No matter how low the transfer price, the manager of the selling division should sell the division's product to other company divisions in the interests of overall company profitability.

	
4.	A major disadvantage of using budgeted costs for transfer prices is that often inefficiencies in actual costs are passed along to the receiving division.

	
5.	Dual pricing reduces the goal-congruence problem associated with a pure cost-based transfer-pricing method.




Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help