For Each of the Following,identify Whether It BEST Relates to (M)arket-Based,(C)ost-Based,(N)egotiated,(A)dministered,or
For each of the following,identify whether it BEST relates to (M)arket-based,(C)ost-based,(N)egotiated,(A)dministered,or (All)types of transfer pricing.
a.Bargaining between selling and buying units (M / C / N / A / All)
b.Objective and provides the proper economic incentives (M / C / N / A / All)
c.145% of full costs (M / C / N / A / All)
d.Avoids confrontation and generally used when a transaction occurs frequently (M / C / N / A / All)
e.Internal product transfers are required (M / C / N / A / All)
f.Prices listed in a trade journal (M / C / N / A / All)
g.Prices do not reflect pure economic considerations nor accountability considerations (M / C / N / A / All)
h.Goal is to motivate decision makers to act in the organization's best interest (M / C / N / A / All)
i.Provide no incentive to the supplying division (M / C / N / A / All)
j.Reflects support of the controllability principle (M / C / N / A / All)
Correct Answer:
Verified
b.M
c.C
d.A
e.M,...
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