A firm's transfer pricing policy should accomplish all of the following EXCEPT
A)promote goal congruence.
B)maintain divisional autonomy.
C)provide accurate performance evaluation.
D)maximize the taxes paid in a foreign country.

Question

Quizplus · Accepted Answer

Maximizing taxes paid in a foreign country would not be a goal of a firm's transfer pricing policy as it would result in additional expenses for the firm. The purpose of a transfer pricing policy is to promote goal congruence, maintain divisional autonomy, and provide accurate performance evaluation while minimizing expenses and maximizing profit.

A Firm's Transfer Pricing Policy Should Accomplish All of the Following