A Price Charged for a Component by the Selling Division

question 67

Multiple Choice

A price charged for a component by the selling division to the buying division of the same company is called a(n)

• A)transfer price.
• B)economic value added.
• C)market price.
• D)cost-based price.
• E)none of these.

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Definitions:

Discounted Payback

A modified payback period method that takes into account the time value of money by discounting cash flows.

Electromagnetism

A branch of physics that studies the interaction between electric currents and magnetic fields.

Solenoid

A coil of wire that acts as a magnet when carrying electric current, often used to control a valve or other components by moving a ferromagnetic core.

Relay

An electrical switch that opens and closes circuits electromechanically or electronically, often used for controlling a high-power circuit with a low-power signal.