A Transfer Pricing System Is Also Known as

question 147

Multiple Choice

A transfer pricing system is also known as

• A)investment center accounting.
• B)a revenue allocation system.
• C)responsibility accounting.
• D)a charge-back system.

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Definitions:

Corporate Tax Rate

The percentage of a corporation's profits that is taken by the government as tax.

Revenue Recognition

The process of recording and identifying revenue in the financial statements when it is earned and realizable.

Percentage-of-Completion

An accounting method used to recognize revenue and expenses of long-term projects proportionally to the project's completion level.

Revenue Recognition

The accounting principle that dictates the conditions under which revenue is recognized or recorded, primarily focusing on the timing and amount.