Transfer-pricing systems do NOT exist to
A) communicate data that will lead to goal-congruent decisions.
B) guide managers to make the best possible decision for their segment.
C) evaluate segment performance.
D) motivate both the selling manager and the buying manager toward goal-congruent behaviour.

Question

Quizplus · Accepted Answer

Transfer-pricing systems are not primarily designed to guide managers to make the best possible decision for their segment; rather, they aim to align decisions with overall organizational goals, evaluate performance, and motivate goal-congruent behavior.

Transfer-Pricing Systems Do NOT Exist to