Allocation of resources among the various units of the multinational corporation requires central management to establish the appropriate transfer price to meet all but which of the following objectives?
A) Planning and executing government mandated ascertainments
B) Reduction of taxes
C) Management of cash flows
D) Minimization of foreign exchange risks

Question

Quizplus · Accepted Answer

Planning and executing government mandated ascertainments may not be a relevant objective for establishing transfer prices within a multinational corporation. The other objectives listed - reduction of taxes, management of cash flows, and minimization of foreign exchange risks - are common reasons for central management to set transfer prices.

Allocation of Resources Among the Various Units of the Multinational