All of the following criteria may be used to choose a transfer-pricing method EXCEPT
A) promotion of quality products.
B) promotion of a sustained high level of management effort.
C) promotion of a high level of subunit autonomy.
D) promotion of goal congruence.
E) promotion of optimal decision making.

Question

Quizplus · Accepted Answer

Promotion of quality products is not a relevant criterion for choosing a transfer-pricing method. The other options, including the promotion of sustained high level of management effort, high level of subunit autonomy, goal congruence, and optimal decision-making, are typically considered when choosing a transfer-pricing method.

All of the Following Criteria May Be Used to Choose