Transfer Pricing Exists When One Division of a Company Produces

question 47

True/False

Transfer pricing exists when one division of a company produces a product that can be used in the production by a different division.

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Definitions:

Input

Resources, materials, or data entered into a system for processing or production.

Production Function

A mathematical representation of the relationship between inputs (such as labor and capital) and the maximum amount of output that can be produced from those inputs.

Factors Of Production

The inputs or resources that are used in the production of goods and services, traditionally categorized as land, labor, capital, and entrepreneurship.

Input

The resources, materials, or data put into a system, process, or machine to obtain a desired output.