Question
1. Briefly explain four reasons why transfer pricing is important for multinational corporations. (2 marks) 2. Identify one of the main advantages and two behavioural
1. Briefly explain four reasons why transfer pricing is important for multinational
corporations.
(2 marks)
2. Identify one of the main advantages and two behavioural implications of the use of the
following transfer pricing methods:
a. Full Cost Based Transfer Price
b. Negotiation Based Transfer Price
Note: There should be two advantages and four behavioural implications in total - i.e.
each transfer pricing method will have one advantage and two behavioural implications.
(4 marks)
Question Six (6 Marks)
People First is a not-for-profit organization.It provides a range of community programs, including children's and seniors' services, disability and mental health services, social programs and other special programs. The organization's mission is to work together with the community to provide supports and services in responsethe changing needs of the community.
Required:
1.List TWO different (and specific) measuresthat could be included in each of the four perspectives of a balanced scorecard that may be appropriate for People First.
(4 marks)
2.Briefly explain four barriers that may prevent some not-for-profit organizations from adopting the balanced scorecard.
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