Question 1
The goal in setting a transfer price is to maximize the benefits to both divisions participating in the exchange.
◦ true
◦ false
Question 2
ABC Corporation has three divisions, a service division with two locations, a retail division with four locations, and a home office, each of which is evaluated individually. This is an example of which type of organization?
◦ Centralization
◦ Investment center
◦ Decentralization
◦ Segmented decision making