For each of the following statements regarding the satisfaction of transfer pricing criteria, identify whether you would expect the transfer pricing method to meet the criteria. Provide a yes, no, or sometimes for each situation.
________ | a. | Market-Based transfer pricing achieves goal congruence. |
________ | b. | Cost-Based transfer pricing achieves goal congruence. |
________ | c. | Negotiated transfer pricing achieves goal congruence. |
________ | d. | Market-Based transfer pricing motivates management effort. |
________ | e. | Cost-Based transfer pricing motivates management effort. |
________ | f. | Negotiated transfer pricing motivates management effort. |
________ | g. | Market-Based transfer pricing is useful for evaluating subunit performance. |
________ | h. | Cost-Based transfer pricing is useful for evaluating subunit performance. |
________ | i. | Negotiated transfer pricing is useful for evaluating subunit performance. |
________ | j. | Market-Based transfer pricing preserves subunit autonomy. |
________ | k. | Cost-Based transfer pricing preserves subunit autonomy. |
________ | l. | Negotiated transfer pricing preserves subunit autonomy. |