Decentralization Costs MCQ (Multiple Choice Questions) PDF Download

Some of the methods used for determining transfer prices are

1. market-based transfer prices
2. cost-based transfer prices
3. negotiated transfer prices
4. all of above

The decision making methods, used for subunits of company are highly interdependent on each other is called

1. incongruent decision making
2. functional decision making
3. congruent decision making
4. duplication decision making

The method of pricing, when two separate pricing methods are used to price, transfer of products from one subunit to another, is called

1. dual pricing
2. functional pricing
3. congruent pricing
4. optimal pricing

The products or services that are transferred between different subunits of a company are classified as

1. mobile products
2. dysfunctional products
3. intermediate product
4. territorial product

The price charged by one subunit to supply products or services to another unit is called

1. subunit autonomy cost
2. transfer price
3. performance prices
4. effort cost