When organizations choose to decentralize their operations,divisions may end up exchanging goods and services with one another rather than with external suppliers or customer.Since managers are evaluated based on how well their divisions perform,they want any transaction with another division to generate positive results.
Required:

Discuss the four ways of determining a transfer price and explain the advantages and disadvantages of each.

Question

When organizations choose to decentralize their operations,divisions may end up exchanging goods and services with one another rather than with external suppliers or customer.Since managers are evaluated based on how well their divisions perform,they want any transaction with another division to generate positive results.
Required:

Discuss the four ways of determining a transfer price and explain the advantages and disadvantages of each.

Quizplus · Accepted Answer

The Answer of When organizations choose to decentralize their operations,divisions may end up exchanging goods and services with one another rather than with external suppliers or customer.Since managers are evaluated based on how well their divisions perform,they want any transaction with another division to generate positive results.
Required:

Discuss the four ways of determining a transfer price and explain the advantages and disadvantages of each.

When Organizations Choose to Decentralize Their Operations,divisions May End Up