(Transfer pricing in service departments) Indicate whether each of the following statements constitutes a potential advantage (A), disadvantage (D), or neither (N) of using transfer prices for service department costs.

a. Can make a service department into a profit center.

b. May reduce goal congruence.

c. Can make users and providers more cost conscious.

d. May increase resource waste.

e. Can increase disagreements among departments.

f. Can put all service departments on an equal footing.

g. Can cause certain services to be under- or overutilized.

h. Can improve ability to evaluate performance.

i. Can increase communication about what additional services are needed and which may be reduced or eliminated.

j. May require additional organizational data and employee time.