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Road Enterprises is a multi-divisional manufacturer of technology-based solutions for the solar-panel industry. CEO Georgina Martinez is happy for divisions to act as autonomous work-units; which she calls investment centres. This seems to have worked successfully in the past with all three divisions having consistently met their financial targets.

The existing transfer pricing policy at Abbey Road Enterprises is: full sourcing autonomy and use of the negotiated method, where the prevailing market price is generally used as the starting point of negotiations. Approximately 50% of each divisions' activity is currently transferred internally. Georgina would like this to increase in the future. Given there is sourcing autonomy, disputes often arise; in which case, Valencia Yang is assigned the task of finding a resolution.

Abbey Road Enterprises CEO: Georgina Martinez was interested in exploring the impact of using a different transfer pricing method and specifically wanted to know if different transfer pricing methods all facilitated decisions in the best interests of the firm (goal congruent decision). Given Georgina's query, which of the following is more likely to be true:

Group of answer choices

1. The dual-transfer pricing method is best at facilitating a goal congruent decision
2. The market-based transfer pricing method is more likely to consistently produce a goal congruent decision than the dual-transfer pricing method.
3. The use of the negotiated method is the only way to produce a goal-congruent decision
4. All transfer pricing methods will facilitate a goal congruent decision

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