a. hold managers accountable for both controllable and noncontrollable costs.
b. place blame on guilty individuals.
c. provide information so that managers can make decisions that are in the best interest of their individual centers rather than in the best interests of the firm as a whole.
d. provide information to managers.
e. identify unfavorable variances.
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Which of the following describes the goal that should be pursued when setting transfer prices?
a. Minimize opportunity costs.
b. Allow top management to become actively involved when calculating the proper dollar amounts.
c. Maximize profits of the buying division.
d. Establish incentives for autonomous division managers to make decisions that are in the overall organization's best interests (i.e., goal congruence).
e. Maximize profits of the selling division.
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