Which of the following is a reason there are divisional conflicts over the transfer price?
a. the manager of the upstream division prefers a transfer price that is too high
b. the manager of the downstream division prefers a transfer price that is too low
c. the corporate headquarters does not have enough information to determine the correct transfer price
d. all of the above
d
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A) rational margin B) marginal cost C) benefit D) opportunity cost E) rational choice
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A. buy; increase B. buy; decrease C. sell; increase D. sell; decrease
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A. 5 B. 11 C. 17 D. 20
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