When One Unit Charges Another Unit in the Same Company

question 138

Multiple Choice

When one unit charges another unit in the same company for goods it ships to its foreign subsidiaries, the charge is called a(n) ________.

• A) original price
• B) transfer price
• C) margin price
• D) break-even price
• E) customer value price

---

Definitions:

Resentment

A feeling of bitterness or indignation experienced as a result of unfair treatment or perceived injustice.

Consequences

The outcomes or effects that result from a particular action or set of conditions.

Punishment

The imposition of a penalty as retribution for an offense, with the intention of discouraging undesirable behavior.

External Locus

The belief that one's outcomes or fate are controlled by external forces or the environment, as opposed to internal factors or personal effort.