For the following questions (13-18) about transfer pricing, assume the organization is X Co. Division S produces a component that can be sold to outside customers at a fair market price or to Division B at a transfer price. Division B uses the component to produce a finished product it sells to outside customers. Division B can also purchase the component from an outside supplier, Co. O at a fair market price.

A transfer pricing system should:

a.	maximize the transfer price	c.	maintain common and harmonious goals between the divisions and the entire firm
b.	minimize the transfer price	d.	none of the above