(Transfer pricing in service departments) Indicate whether each of the fol¬ lowing statements constitutes a potential advantage (A), disadvantage (D), or neither (N) of using transfer prices for service department costs.

a. Can increase resource waste

b. Can make a service department into a profit center

c. Can cause certain services to be under- or overutilized

d. Can put all service departments on an equal footing

e. Can require additional organizational data and employee time

f. Can reduce goal congruence g. Can increase communication about what additional services are needed and which can be reduced or eliminated h. Can make users and providers more cost conscious i. Can improve ability to evaluate performance j. Can increase disagreements among departments

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