(b)What is the difference between external and internal
pricing? 

What factors must be considered when setting internal transfer pricing
between divisions of a company? 

What are the different methods of setting
internal transfer pricing? Which is the most effective? Why?

(c) What is responsibility accounting? 

For what costs should
managers of responsibility centers be held accountable? 

What are some of the
behavioral issues that surround responsibility accounting? 

How should these
issues be addressed?