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Stratford Inc. (a U.S.-based company) has a foreign subsidiary. Stratford required the foreign subsidiary to sell its output to an affiliated company in Japan at

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Stratford Inc. (a U.S.-based company) has a foreign subsidiary. Stratford required the foreign subsidiary to sell its output to an affiliated company in Japan at a price of FC 100 per unit, even though all of the foreign subsidiary's output could have been sold locally at a price of FC 120 per unit. Which statement is true for the performance evaluation of the foreign subsidiary manager? The net profit is not appropriate evaluation measure because of the discretionary transfer price. Stratford should use net profit as the performance measure. Stratford should only use financial measure. Stratford should use market share as the performance measure

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