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islandgurl islandgurl
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7 months ago
The goal of setting a transfer price is to

▸ maximize the profit of the transferring division.

▸ maximize the overall profit of the organization.

▸ ensure that all divisions have the resources they need to operate.

▸ motivate managers to behave in the best interest of the firm as a whole.
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
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12Jfiscus12Jfiscus
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motivate managers to behave in the best interest of the firm as a whole.
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