Decentralised Organisation: True/False Quiz

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Test your understanding of decentralised control and transfer pricing in this quick Yes/No quiz.

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salumah nain

Malaysia

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Decentralised Organisation: True/False QuizOnline version Test your understanding of decentralised control and transfer pricing in this quick Yes/No quiz. by salumah nain 1 Return on Investment (ROI) and Residual Income (RI) are the same performance metric. Yes No 2 The market price transfer pricing method is always used regardless of the existence of an outside market. Yes No 3 A transfer price can never be negotiated between divisions. Yes No 4 There are six types of responsibility centres. Yes No 5 Decentralisation is motivated by accessibility to local information and by opportunities for motivation and training. Yes No 6 There are four types of responsibility centres: cost, revenue, profit, and investment centres. Yes No 7 Under excess capacity, the minimum transfer price equals full cost including fixed costs. Yes No 8 The three commonly used transfer pricing methods are market-based transfer pricing, negotiated transfer pricing, and cost-based transfer pricing. Yes No 9 Return on Investment (ROI) measures the efficiency of an investment as net profit divided by the cost of investment. Yes No 10 Economic Value Added (EVA) is calculated as after-tax operating income minus the annual cost of capital. Yes No

Decentralised Organisation: True/False QuizOnline version

Test your understanding of decentralised control and transfer pricing in this quick Yes/No quiz.

by salumah nain

Return on Investment (ROI) and Residual Income (RI) are the same performance metric.

Yes

The market price transfer pricing method is always used regardless of the existence of an outside market.

Yes

A transfer price can never be negotiated between divisions.

Yes

There are six types of responsibility centres.

Yes

Decentralisation is motivated by accessibility to local information and by opportunities for motivation and training.

Yes

There are four types of responsibility centres: cost, revenue, profit, and investment centres.

Yes

Under excess capacity, the minimum transfer price equals full cost including fixed costs.

Yes

The three commonly used transfer pricing methods are market-based transfer pricing, negotiated transfer pricing, and cost-based transfer pricing.

Yes

Return on Investment (ROI) measures the efficiency of an investment as net profit divided by the cost of investment.

Yes

Economic Value Added (EVA) is calculated as after-tax operating income minus the annual cost of capital.

Yes

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Decentralised Organisation: True/False Quiz

Yes or No

About this activity

Created by

Download the paper version to play

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Decentralised Organisation: True/False QuizOnline version

by salumah nain

Return on Investment (ROI) and Residual Income (RI) are the same performance metric.

The market price transfer pricing method is always used regardless of the existence of an outside market.

A transfer price can never be negotiated between divisions.

There are six types of responsibility centres.

Decentralisation is motivated by accessibility to local information and by opportunities for motivation and training.

There are four types of responsibility centres: cost, revenue, profit, and investment centres.

Under excess capacity, the minimum transfer price equals full cost including fixed costs.

The three commonly used transfer pricing methods are market-based transfer pricing, negotiated transfer pricing, and cost-based transfer pricing.

Return on Investment (ROI) measures the efficiency of an investment as net profit divided by the cost of investment.

Economic Value Added (EVA) is calculated as after-tax operating income minus the annual cost of capital.

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