
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.
Correct Answer:
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b.Sometimes
c....
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