A company's senior management has determined that the actual full cost will be used to...
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A company's senior management has determined that the actual full cost will be used to determine the transfer price for goods sold from one division to another division. The selling division has excess capacity and can sell goods to other divisions or to outside customers at a higher price. An advantage of this transfer pricing model is that it A Motivates management to achieve costeffectiveness. B Is effective for performance evaluation. C Achieves goal congruence within the company. D Preserves each division's autonomy. 
A company's senior management has determined that the actual full cost will be used to determine the transfer price for
goods sold from one division to another division. The selling division has excess capacity and can sell goods to other
divisions or to outside customers at a higher price. An advantage of this transfer pricing model is that it
A Motivates management to achieve costeffectiveness.
B Is effective for performance evaluation.
C Achieves goal congruence within the company.
D Preserves each division's autonomy.
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