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Author Question: In comparing the three basic approaches to transfer pricing, which of the following statements would be true? (Read 38 times)

mynx

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In comparing the three basic approaches to transfer pricing, which of the following statements would be true?
◦ A cost-based approach preserves subunit autonomy while negotiated transfer prices do not.
◦ Market-based transfer pricing motivates managers but negotiated prices do not.
◦ Cost-based transfer pricing systems are more difficult to implement and often make more time to implement than negotiated transfer pricing.
◦ Market-based transfer pricing achieves goal congruence when markets are competitive while cost-based can achieve goal congruence, but not always.


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Marked as best answer by mynx on Mar 6, 2021

Kdiggy

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mynx

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Reply 2 on: Mar 6, 2021
YES! Correct, THANKS for helping me on my review


bdobbins

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Reply 3 on: Yesterday
:D TYSM

 

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