CIMA Exam CIMAPRO19-P02-1 Topic 6 Question 16 Discussion

Actual exam question for CIMA's CIMAPRO19-P02-1 exam

Question #: 16
Topic #: 6

Which of the following statements is NOT correct?

Transfer prices between responsibility centers should be set at a level that:

Aprovides an artificial selling price that enables the transferring division to earn a return for its efforts and the receiving division to incur a cost for benefits received.

Benables profit centre performance to be measured 'commercially'.

Cencourages a balance of goal congruence, managerial effort and centralized management.

Dencourages profit centre managers to agree on the amount of goods and services to be transferred at a level that is consistent with organizational aims.

Show Suggested Answer

Suggested Answer: C

by Rasheeda at May 08, 2022, 11:57 PM

Limited Time Offer

25%

Off

Get Premium CIMAPRO19-P02-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Currently there are no comments in this discussion, be the first to comment!