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Why changing a transfer price will have no direct effect

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Reference no: EM132896548

Question -

1) "People lower in the hierarchy will serve their own interests." Briefly explain how employee self interest could be good or bad for decentralization (ie explain both possibilities and conditions that would make it a positive or negative).

2) Briefly explain why changing a transfer price will have no direct effect on a company's reported profit.

Reference no: EM132896548

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