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

Which of the following statements is NOT correct?Transfer prices between responsibility centers should be set at a level that:
C) encourages a balance of goal congruence, managerial effort and centralized management.
A) provides 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.
B) enables profit centre performance to be measured 'commercially'.
D) encourages profit centre managers to agree on the amount of goods and services to be transferred at a level that is consistent with organizational aims.

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

Actual exam question for CIMA's CIMAPRO19-P02-1 exam
Question #: 16
Topic #: 6
[All CIMAPRO19-P02-1 Questions]

Which of the following statements is NOT correct?

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

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Suggested Answer: C

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

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Casandra
7 months ago
C is a bit vague, not sure it’s accurate.
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Corinne
7 months ago
B seems right to me, though.
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Felicitas
8 months ago
Wait, are we sure about that?
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Shakira
8 months ago
I agree, A sounds off.
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Audry
8 months ago
A is definitely not correct.
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Claudia
8 months ago
Hmm, I'm a bit confused on this one. The website is accessible globally, but the subscription is only in US dollars. Does that mean the GDPR still doesn't apply since the users aren't in the EU?
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Denise
8 months ago
I'm feeling a little lost on this one. I know bar graphs have different ways to display data, but I'm not totally clear on how "Group by" and "Stacked by" work in this context. I'll have to make an educated guess.
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Francoise
8 months ago
I remember learning that the Fallback function is a special function in Solidity that gets called when no other function matches the function call. So I think option C, that it can be used to avoid receiving Ether, makes the most sense to me.
upvoted 0 times
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