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Author Question: A reason there are divisional conflicts over the transfer price a. the manager of the upstream ... (Read 59 times)

tichca

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on: Jul 1, 2018
A reason there are divisional conflicts over the transfer price
 a. the manager of the upstream division gets rewarded for a transfer price that is too high
  b. the manager of the downstream division gets rewarded for a transfer price that is too low
  c. the corporate headquarters does not have enough information to determine the correct transfer price
  d. all of the above

Question 2

Physicians who own their own diagnostic testing facilities tend to order more tests, charge higher fees for them, and have higher total bills to patients. This practice of self-referral is an example of
 a. moral hazard.
  b. adverse selection.
  c. resipsaloquitor.
  d. physician-induced demand.
  e. cognitive dissonance.


mcomstock09

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Reply #1 on: Jul 1, 2018
Answer to Question 1

b

Answer to Question 2

D


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