All of the Following Are True Regarding Transfer Prices Except

question 111

Multiple Choice

All of the following are true regarding transfer prices except which one?

• A)Transfer prices occur when a firm engages in divestiture.
• B)The transfer price is the internal firm price on an input that input- producing division charges the input- using division.
• C)Transfer prices can affect the taxes a firm must pay.
• D)Transfer prices are an accounting entry for the within- firm price of an input.

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Definitions:

Sedimentary

Relating to rocks formed by the accumulation and consolidation of mineral and organic particles deposited by water, air, or ice.

Clastic

A material consisting of pieces (clasts) derived from preexisting rocks; usually formed on Earth’s surface in low-temperature environments; syn. detrital.

Clast Density

The measure of the density of the fragments or grains that make up a sedimentary rock.

Clast Size

The dimensions of the fragments or grains that make up sedimentary rocks, indicating the energy of the environment in which they were deposited.