is quickly becoming a major player in the personal computer market. The multiple companies producing products fhat go into an Orange computer. This company currently has practice of having an outside firm provide a function for Orange Computer Co. is called: companies A. Profitability maximization. B. Opportunity C. Outsourcing. D. Strategie positioning. 8. Employee morale and social responsibility represent two examples of A. Qualitative decision factors. B. Differential factors. C. Opportunity costs. D. Sunk cost expenditures. 9. The most likely result of a negotiated transfer price is that it: A. Takes away the ultimate responsiblity of the resulting transter price from the two perties B. Decreases sub-unit (i.e., divisional) autonomy C. Can be costly and time-consuming to implement. D. Generally results in transfering more than the optimum number of units between the buying and selling divisions of the organization. 10. In the context of transfer pricing, dual pricing is: A. Never used when numerous conflicts exist between two units. B. Not recommended because of negative behavioral consequences. C. The use of two or more transfer pricing methods by the buyer only D. The simultaneous use of two or more transfer pricing methods. 11. The primary limitation of a full-cost based transfer pricing system is that: A. The supplying and purchasing divisions are more likely to make decisions that are inconsistent with the goals of the organization as a whole. B. There will be little incentive on the part of the supplying manager to supply goods and services efficiently C. Managers may spend too much time negotiating the transfer price. D. Managers may find that the transfer price is difficult to compute. 12. Many firms choose to achieve target cost through redesign of the product or service because they recognize that design decisions: A. Are life cycle costs with high downstream costs and benefits. B. Account for much of the total product life cycle costs. C. Impact costs at the manufacturing stage of the life cycle. D. Are critical success factors in most firms