Chapter 2 - Performance Evaluation Flashcards

1
Q

Objectives of Transfer Pricing

A
  1. Resource All- optimum manner -
  2. Promote - Goal congruence
  3. Motivate - Div Managers
  4. Facilitate - Assesment of Mgmt Perf
  5. Retain - Div Autonomy
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2
Q

Objectivity of Divisional Profitability

A
  1. Provide- info- econ decisions
  2. Facilitate the control of division operations
  3. Motivate Managers- high levels - div perf
  4. Serve- basis - eval perf
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