In a divisional corporate organisation, an ideal inter-divisional transfer price should:
A) maximise the profits of the selling division.
B) maximise the profits of the corporation.
C) ensure goal congruence, divisional autonomy and motivation.
D) All of the given answers

Question

Quizplus · Accepted Answer

An ideal inter-divisional transfer price should aim to maximise the profits of the corporation while ensuring goal congruence, divisional autonomy, and motivation. This includes both the interests of the selling division and the broader corporate objectives, making all the given answers correct.

In a Divisional Corporate Organisation, an Ideal Inter-Divisional Transfer Price