Decentralization Costs Multiple Choice Questions with Answers – PDF Download

MCQ 1: 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

MCQ 2: 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

MCQ 3: 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

MCQ 4: 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

MCQ 5: 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