_____ Is an Approach Used for Establishing a Market-Based Transfer

question 159

Multiple Choice

_____ is an approach used for establishing a market-based transfer price.

• A)Full cost plus a normal profit markup
• B)External market price less selling and delivery costs
• C)External market price plus a profit markup
• D)Variable cost plus unavoidable fixed cost

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Definitions:

IFRS

International Financial Reporting Standards, a set of global accounting guidelines providing a common language for business affairs so that company accounts are understandable and comparable across international boundaries.

SEC

The U.S. Securities and Exchange Commission, a federal agency responsible for enforcing federal securities laws and regulating securities industry, stock and options exchanges.

U.S.GAAP

United States Generally Accepted Accounting Principles, a set of accounting standards and principles used to prepare financial statements in the U.S.

Economic Events

Transactions and occurrences that affect the financial position and performance of a business.