The Transfer Pricing Method That Uses the Price the Company

question 74

Multiple Choice

The transfer pricing method that uses the price the company would charge external customers is the

• A)market price method.
• B)cost-based method.
• C)negotiation.
• D)balanced scorecard methoD.The market price is the price that a company would charge to external customers.

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Definitions:

Unemployment Insurance

A government program that provides financial assistance to unemployed workers who have lost their jobs through no fault of their own.

Automatic Stabilizers

Economic policies and programs that automatically adjust to counteract economic fluctuations without the need for government intervention.

Business Cycle

The fluctuations in economic activity that an economy experiences over a period of time, marked by periods of expansion and contraction in GDP.

Fiscal Drag

The negative effect on disposable income and aggregate demand when taxes do not fall in line with inflation, effectively increasing the tax burden.