1.Which of the following is not a commonly used approach to setting transfer prices?

market price approach

revenue price approach

cost price approach

negotiated price approach

2.All of the following are advantages of decentralization except

Expertise in all areas of the business is difficult; decentralization makes it better to delegate certain responsibilities.

Managers make better decisions when closer to the operations of the company.

Each decentralized operation purchases its own assets and pays for operating costs.

Decentralized managers can respond quickly to customer needs.