Top Management Intervention in Settling Transfer Pricing Disputes Between Two

question 73

Multiple Choice

Top management intervention in settling transfer pricing disputes between two divisions should be avoided unless

• A) there is no intermediate market.
• B) the intermediate market is imperfect.
• C) there is an extraordinarily large order.
• D) there are no opportunity costs.

---

Definitions:

Taxes Rise

An increase in the compulsory contribution to state revenue, levied by the government on workers' income and business profits, or added to the cost of some goods, services, and transactions.

Taxicabs

Vehicles for hire equipped with a driver, used by individuals or small groups to travel from one location to another for a fare.

Auto Insurance

A contract between a vehicle owner and an insurance company, providing financial protection against physical damage or bodily injury resulting from traffic collisions and against liability that could also arise from incidents in a vehicle.

Flat Fee

A fixed charge for a service, regardless of usage or time consumed.