Managerial

Question 1

Balance Scorecard

Answer 1

CLIF

Customer, learning/growth, internal procesess, financial

Question 2

Transfer Pricing: Pros and Cons of Market and what conditions needed to optimal decision?

Answer 2

Pro:
- can lead to optimal
- all divisions will show a profit
- most appropriate for profit centers, so each will show a profit

Con:
- outside market data is needed

Conditions:
- Buying should purchase internally if selling is market priced
- buying can buy from market freely
- selling can sell internally or externally freely
- need impartial board

*always consider lost CM on external sales