Which of the Following Types of Transfer Prices Do NOT

question 27

Multiple Choice

Which of the following types of transfer prices do NOT encourage the selling division to be efficient?

• A)transfer prices based upon market prices
• B)transfer prices based upon actual costs
• C)transfer prices based upon standard costs
• D)transfer prices based upon standard costs plus a markup for profit

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Definitions:

U.S. Imports

refer to goods and services purchased from other countries by the United States, contributing to its economy's supply side.

Foreign Exchange Markets

Platforms for trading national currencies against one another, critical for international trade and finance.

U.S. Exports

Goods, services, and commodities sent from the United States to other countries as part of international trade.

Foreign Exchange Market

A global marketplace for trading national currencies against one another, instrumental in setting exchange rates.