Transfer Pricing Is Used When

question 39

Multiple Choice

Transfer pricing is used when:

• A)multiple cost centres are conducting business within the company.
• B)a decentralized company has profit centres or investment centres.
• C)the return on investment ratio cannot be computed.
• D)a company is transferring goods to the government.

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Definitions:

Mixers

Devices or software used to blend or combine different audio tracks into a single sound output.

Average Fixed Cost

The fixed costs of production divided by the quantity of output produced. It decreases as production increases.

Range of Output

The spectrum of quantity of goods or services produced, from minimum to maximum, that a company or an economy can achieve.

Mixers

Devices or substances used in the preparation of alcoholic beverages to add flavor or dilute strength, such as soda, juice, or tonic.