List two objectives in setting transfer prices.
What will be an ideal response?
1. Achieving goal congruence by selecting a price that will maximize overall company profits
2. Evaluating the managers of the responsibility centers
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Which of the following statements describes a scenario when management should consider dropping a business division?
A) The division has been consistently reporting an operating loss. B) The division's avoidable fixed costs are less than its contribution margin. C) The division's avoidable fixed costs are greater than its contribution margin. D) The division's unavoidable fixed costs are greater than its operating loss.
Briefly explain how changes in currency exchange rates can affect a multinational company's pricing strategies
What will be an ideal response?
One of the changes brought about through recent workers' compensation laws is that disabled workers receive uniform compensation regardless of the state in which they work.
Answer the following statement true (T) or false (F)
Describe some of the ways employers have been trying to contain health insurance costs.
What will be an ideal response?