The overhead allocation method that allocates service department costs without consideration of services rendered to other service departments is the

In a decentralized company in which divisions may buy goods from one another, the transfer pricing system should be designed primarily to

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ASSIGNMENT #6 EDITED

Investment center.

In a decentralized company in which divisions may buy goods from one another, the transfer pricing system should be designed primarily to

a. aid in the appraisal and motivation of managerial performance.

b. allow division managers to buy from outsiders.

c. increase the consolidated value of inventory.

d. minimize the degree of autonomy of division managers.

Question text

Decentralized firms can delegate authority by structuring an organization into responsibility centers. Which of the following organizational segments is most like a totally independent, standalone business where managers are expected to "make it on their own"?

a. Contribution center.

b. Cost center.

c. Profit center.

d. Investment center.

e. Revenue center.
Question text

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