▼Divisional managers should be free to make their own decisions.A transfer pricing system should eliminate the need for head office to tell divisions what to do

　　Commentary

　　▼Autonomy should improve motivation of divisional managers.

　　1.2.3 Divisional performance evaluation

　　▼Transfer prices should be “fair” and allow an objective assessment of divisional performance.

　　▼There is likely to be conflict between these objectives.

　　Key point

　　▼Goal congruence must take priority.