ACCT 349 help A Guide to career/Snaptutorial ACCT 349 help A Guide to career/Snaptutorial | Page 14

3.The desire to attain a selected goal combined with the resulting
pursuit of that goal is called _______
4.___________ is the freedom for managers at lower levels of an
organization to make decisions.
5.____________refers to the degree of freedom to make decisions.
6.____________________ arises when the benefit of a decision to a
subunit is more than offset by the costs or loss of benefit to the
organization as a whole.
7.Products transferred between subunits of a company are
called________________
8.What four criteria help in choosing a transfer
price?___________________
9.In many situations, a general guideline formula has proven to be a
helpful first step in setting a minimum transfer price. This minimum
transfer price is equal to the sum of which two per-unit costs?
___________________________
Multiple Choice
1.(CMA adapted) Which of the following is decentralization least
likely to accomplish?
a.Provide a pool of management talent
b.Shorten decision time
c.Heighten goal congruence
d.Increase motivation of subunit managers
2.(CPA) Brent Co. has intracompany service transfers from Division
Core, a cost center, to Division Pro, a profit center. Under stable
economic conditions, which of the following transfer prices is likely
to be most conducive to evaluating whether both divisions have met
their responsibilities?
a.Actual cost
b.Standard variable cost
c.Actual cost plus a markup
d.Negotiated price
3.Designing the transfer-pricing system is most difficult in
organizations that are:
a.Highly decentralized with many interdependencies among subunits
b.Highly centralized with many interdependencies among subunits