Which of the Following Is Not a Method Used to Determine

question 49

Multiple Choice

Which of the following is not a method used to determine transfer prices?

• A)The market-price method
• B)The cost-based method
• C)Negotiation
• D)The balanced scorecard method

---

Definitions:

Return on Assets

A financial ratio indicating the profitability of a company relative to its total assets.

Costs of Goods Sold

Costs directly related to the manufacture of products sold by a company.

Accounts Receivable

Outstanding payments from debtors to a company for goods or services already utilized or delivered but not paid for.

Market-to-Book Ratio

A ratio used to compare a company's current market value to its book value, indicating how highly valued a company is in comparison to its actual assets.