Transfer prices and division autonomy You are a government controller. A LO 6 division manager being audited objects to the transfer price he is being charged by the audit group for the audit services. The manager observes, "If I have to pay for these services, I should be allowed to buy them from an out¬ side supplier who is prepared to offer them to me at a lower price." You have been asked to mediate this dispute. What would you do?

(LO 1)