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What should be objective of a firm transfer pricing policy

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Reference no: EM132541053

Question 1: What should be the objective(s) of a firm's transfer pricing policy?

Option a) Ensure a secure source of inputs at the best price possible.

Option b) Promote goal congruence, while maintaining divisional autonomy so that accurate performance evaluation can be made.

Option c) Develop a cooperative relationship between divisions, while maintaining enough competitiveness to ensure the survival of the firm.

Option d) Develop a pricing system that facilitates good record keeping that is acceptable under GAAP.

Reference no: EM132541053

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